Coinsilium Group Ltd (AQSE:COIN, OTCQB:CINGF) took part in a funding round for Yellow Network, the first broker clearing network for cryptocurrency exchanges, brokers and trading institutions.
The blockchain investor signed what is called a ‘simple agreement for future tokens’, or a SAFT, with Layer3 FinTech Ltd to purchase US$200,000 of YELLOW tokens, the native token of Yellow Network.
Yellow Network is designed to allow direct person-to-person trading between different blockchains and cryptocurrency exchanges, using a financial information exchange and global distributed overlay.
It was formed by the December 2021 merger of Yellow Inc and Openware Inc, with the former a cryptocurrency market-maker and the latter bringing ten years of experience servicing European retail banks and five years developing trading platforms, including for major crypto exchanges.
“Yellow Network is a highly ambitious venture headed up by a very capable and impressive team of experienced trading software and blockchain industry veterans which aims to transform the current cryptocurrency exchange trading landscape through the creation of a peer-to-peer clearing house,” said Eddy Travia, chief executive of Coinsilium.
He noted that cryptocurrency exchange services are “some of the most profitable activities in the blockchain space”, giving Binance as an example, with its daily globally processing of around US$76bn worth of crypto trades and its estimated valuation of around US$300bn, and Coinbase’s debut market valuation of US$86bn.
“Irrespective of these impressive numbers, the global market for crypto trading is still very much in its infancy and has yet to leverage the full power of the blockchain as a distributed ledger technology,” Travia added.
“We are therefore very excited to support this early funding round of the Yellow Network and we look forward to updating the market on further developments on this exciting project.”
Yellow CEO Louis Bellet said the support of Coinsilium will allow the network to step up research and development.
“The partnership will further influence the blockchain community by connecting exchanges and market makers, through a clearing house layer. We are seeking to address the complex challenges of cross-chain transactions and help simplify users' trading needs through a next-gen financial platform," he said.
Yellow Network partners include GSR, Gate.io, LD Capital, Master Ventures, Moonrock Capital, Yellow Spoon Capital, NOIA, with further partnerships expected to be announced in the coming weeks via the Yellow Network blog.