Ripple’s Chris Larsen leads $10m investment in Yellow Network

Yellow Network, a web3 blockchain platform for decentralized exchange of digital assets, has raised $10 million in a seed round led by Ripple co-founder Chris Larsen.

The Ripple co-founder’s investment will help the Yellow Network team bring blockchain solutions to market and address challenges facing crypto investors. Larsen’s investment reinforces the network’s important role in the crypto space, Yellow Network said in a Sept. 17 announcement.

What is Yellow Net?

Yellow Network’s clearing system is a layer 3 peer-to-peer protocol that uses state channels to facilitate trade and payments through smart clearing.

Decentralized clearing allows financial transactions between two parties to be settled without the need for centralized intermediaries, eliminating the need for clearinghouse services seen in the traditional financial sector.

The project, which is preparing for the launch of its native token, offers an ecosystem that supports decentralized finance experiences for digital asset exchanges, brokers, and investors.

YELLOW token is expected to be released in Q4

In March 2024, Yellow Network announced its partnership with Linea, a layer 2 network for decentralized applications. Yellow Network aims to strengthen DeFi penetration and the overall trading ecosystem while targeting greater collaboration and integration in the crypto sector.

The platform launched the testnet for its P2P exchange protocol in December 2023, and the YELLOW token is expected to be launched in the fourth quarter of 2024.

Yellow Network’s seed round saw participation from a variety of venture capital firms and investors, including Consensys, Cobo, Moonrock, and NOIA Capital. Other strategic partners backing the project include Fireblocks, Assetum, Magmo, and Qredo.