Yellow Network has announced the integration of its third-level clearing network, Yellow Clearnet, with the XRPL EVM Sidechain.
This collaboration represents a fundamental step for the decentralized finance sector, aiming to improve liquidity and traceability of real-world assets (RWA) through high-speed learning and settlement processes, managed off-chain.
Yellow Clearnet: the solution for global liquidity
At the center of this innovation is Yellow Clearnet, a clearing network that enables real-time, non-custodial cross-chain trading, off the main blockchain.
Thanks to the use of state channels, transactions can occur between isolated exchanges and brokers, with only the final registration on the blockchain.
This approach allows for the creation of a global and unified liquidity pool, overcoming the scalability limits that have hindered the growth of decentralized markets.
XRPL EVM Sidechain: interoperability and speed
The XRPL EVM Sidechain stands out for being a fast and secure network, designed to allow EVM-compatible applications to operate alongside the XRP Ledger.
Developed by Peersyst in collaboration with Ripple and the XRPL community, the sidechain connects to the decentralized ledger via the Axelar bridge, enabling the native transfer of XRP between the two networks and ensuring interoperability with over 80 different blockchains.
Technical Features of the XRPL EVM Sidechain
The sidechain uses XRP as the native token for gas, offers reduced block times and low transaction fees, thus creating an efficient environment for building cross-chain DeFi applications, tokenization, and payments.
These features make it an ideal platform for developing innovative solutions in the decentralized finance landscape.
Statements from the Protagonists
Louis Bellet, co-founder of Yellow Network, commented:
“This is extremely exciting news for both Yellow Network and XRPL EVM Sidechain. The sidechain provides the foundation for the tokenization of real assets, while Yellow Network offers the engine to make these assets truly liquid and tradable.”
An Ever-Expanding Infrastructure
Yellow Clearnet is designed as an independent and highly versatile overlay network, capable of integrating with various blockchains. In addition to the recent connection with XRPL EVM Sidechain, integrations with Ethereum, Polygon, and Binance Smart Chain are already operational.
In the near future, connections with Solana, Bitcoin, and Polkadot are also planned, confirming Yellow Network’s intention to extend its infrastructure to the entire blockchain ecosystem.
Origins and Mission of Yellow Network
Founded in 2018, Yellow Network emerged as a response to the problem of liquidity fragmentation in the crypto sector, connecting previously isolated entities through state channels.
These private off-chain transaction channels enable high-frequency trades, trustless and with reduced costs, recording only the final balance on the blockchain.
The strategic importance of the project was also recognized by Chris Larsen, co-founder of Ripple, who led the $10 million seed funding round in September 2024.
A complete Web3 ecosystem
Yellow Network presents itself as a comprehensive Web3 ecosystem, providing infrastructure and tools for developers aimed at supporting a new generation of high-performance DeFi applications.
The technological core is the Layer-3 protocol, which enables real-time, non-custodial, off-chain cross-chain trading through state channels, with only the final registration on the blockchain.
The Role of the Yellow SDK
Completing the technological offering is the Yellow SDK, an advanced software development kit that allows developers to create efficient, user-friendly, and innovative decentralized applications (dApps).
The stated goal of Yellow Network is to drive the mass adoption of Web3, building a more efficient and inclusive financial ecosystem, capable of extending the principles of bitcoin and ethereum to everyday life.
Future Prospects for the Tokenization of Real Assets
The integration between Yellow Network and XRPL EVM Sidechain marks a turning point for the tokenization and trading of real assets.
Thanks to greater interoperability, speed, and liquidity, a new generation of decentralized financial products is paving the way, making the market more accessible, transparent, and secure for all parties involved.
The collaboration between these two entities represents a concrete example of how technological innovation can break down the traditional barriers of finance, bringing the digital world ever closer to the real one.