Prediction market volumes surged past $13 billion by the end of 2025, up from under $100 million in early 2024. The growth is prompting infrastructure builds aimed at institutional traders entering event-driven markets.
Paradigm is developing a professional-grade trading terminal designed to aggregate liquidity across onchain and regulated prediction platforms. The project, led by partner Arjun Balaji and initiated in late 2025, aims to provide analytics, execution tools, and routing capabilities similar to traditional financial terminals.
Ben Weiss
Are Prediction Markets Becoming A New Asset Class?
The firm is also exploring an internal market-making operation and a “prediction market index” that would bundle multiple contracts into a single tradable product. Such an index would mirror benchmarks like the S&P 500, signaling a shift toward standardized instruments in event-based trading.
Capital flows into the sector are accelerating. Prediction market startups attracted $3.7 billion in funding, while regulated platform Kalshi reached a $22 billion valuation following consecutive $1 billion funding rounds, according to reports from Yahoo Finance and The Wall Street Journal. Compared with earlier experimental phases, the sector is now drawing institutional-scale capital and infrastructure investment.
Paradigm has already begun aggregating market data into a public dashboard, a step toward building the data layer required for institutional adoption. The firm’s continued backing of Kalshi, alongside investors such as Sequoia and Andreessen Horowitz, reflects growing confidence in regulated event markets as a viable trading segment.
Can standardized tools and indices transform prediction markets into core financial infrastructure? The next catalyst will likely come from product launches and whether institutional traders adopt dedicated terminals for liquidity aggregation and risk management across fragmented venues.
