Chris Larsen, co-founder of Ripple, has spearheaded a $10 million seed funding round for Yellow Network, a nascent decentralized clearing network that aims to rectify current inefficiencies in cryptocurrency transactions.
The investment by the Ripple co-founder will bolster efforts to tackle prevalent issues in the digital asset market such as liquidity fragmentation, scalability, and capital efficiency.
“Other notable backers and supporters include Consensys, GSR, NxGen, MV Global, Gate Labs, ZBS Capital, Moonrock Capital, Math, Cobo, NOIA Capital, and LD Capital.”Related: Demand for Japanese yen stablecoins is ‘only a matter of time’ — Brad Garlinghouse
A press release distributed to Cointelegraph elucidates that Yellow Network’s decentralized clearing protocol is tailored to “address critical industry challenges.”
“The chain-agnostic network is founded on state channel technology and delivers capital efficiency, reduced latency, and scalability for the continually expanding digital asset market.”Discussing the investment, Larsen remarked that the protocol is “essential” for newcomers and provides a “game-changer” solution due to its “fast trade execution and capital efficiency.”
Decentralized clearing circumvents the need for centralized intermediaries or a clearinghouse to settle financial transactions between parties — effectively removing the middleman.
This process is managed on the blockchain or through smart contracts and typically involves maintaining privacy while eliminating central authorities found in conventional financial systems.
The compromise with this system is the balance between decentralization and regulated, centralized alternatives — the latter usually offering more consumer protective measures.
As CNBC reported on Sept. 6, Larsen endorsed Vice President Kamala Harris for president in a letter signed alongside 87 other corporate leaders in the United States.
According to the CNBC report, the 88 US corporate leaders included 21st Century Fox CEO James Murdoch and Snap chairman Michael Lynton, among others.
The announcement followed the exit of former Ripple board member Gene Sperling from the White House in early August to join Kamala Harris’ 2024 presidential campaign.
