Chris Larsen, co-founder of Ripple, has led a $10 million seed funding round for the new decentralized clearing project Yellow Network. The investment aims to address liquidity fragmentation, scalability, and capital efficiency issues in the digital asset market.
Expanding Crypto Trading Capabilities
According to a press release, Yellow Network uses a decentralized clearing protocol to address critical industry challenges. The chain-agnostic network is built on state channel technology and provides capital efficiency, reduced latency, and scalability for the growing digital asset market.
Understanding Decentralized Clearing
Decentralized clearing involves bypassing centralized intermediaries or clearinghouses to settle financial transactions between parties, eliminating middlemen from the process. This function is managed on the blockchain or through smart contracts and typically involves preserving privacy and removing central authorities seen in traditional financial systems. It's important to note that there is a tradeoff between decentralization and regulated, centralized alternatives, which often feature more consumer protective measures.
Support for Kamala Harris
As reported by CNBC on September 6, Chris Larsen signed a letter alongside 87 other U.S. corporate leaders endorsing Vice President Kamala Harris for president. Other notable signatories included 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, who joined Kamala Harris’s 2024 presidential campaign.
Chris Larsen's support for the new Yellow Network project and his political involvement highlight his role in shaping both the digital and political landscape.
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