According to Cointelegraph, Chris Larsen, co-founder of Ripple, has spearheaded a $10 million seed funding round for Yellow Network, a new decentralized clearing network aimed at addressing inefficiencies in the cryptocurrency market. The investment will support efforts to resolve issues related to liquidity fragmentation, scalability, and capital efficiency in the digital asset market.
The press release shared with Cointelegraph highlights that Yellow Network’s decentralized clearing protocol is designed to tackle critical industry challenges. The chain-agnostic network utilizes state channel technology to provide capital efficiency, reduced latency, and scalability for the growing digital asset market. Larsen emphasized the importance of the protocol, describing it as essential for newcomers and a game-changer due to its fast trade execution and capital efficiency.
Decentralized clearing involves bypassing centralized intermediaries or a clearinghouse to settle financial transactions between parties, eliminating the need for a middleman. This process is managed on the blockchain or through smart contracts, typically preserving privacy and removing central authorities seen in traditional financial systems. However, there is a tradeoff between decentralization and regulated, centralized alternatives, which often feature more consumer protective measures.
In related news, as reported by CNBC on September 6, Larsen signed a letter endorsing Vice President Kamala Harris for president, alongside 87 other corporate leaders in the United States. The endorsement included notable figures such as 21st Century Fox CEO James Murdoch and Snap chairman Michael Lynton. This news followed the departure of former Ripple board member Gene Sperling from the White House in early August to join Kamala Harris’ 2024 presidential campaign.
