The tokenization of real-world assets has created a competitive race among blockchain networks to provide speed, liquidity, and seamless interoperability. Projects aiming to make previously illiquid assets tradeable in real time must carefully select the technology that underpins their ecosystem.
For Yellow Network, this decision was critical, as it would define the platform’s ability to execute high-frequency trading while maintaining reliability and efficiency.
According to Crypto Eri ~ Carpe Diem, Yellow Network CEO Shyla Khan explained that the decision to integrate the XRP Ledger EVM (XRPL EVM) sidechain was driven by practical functionality rather than investment ties.
While Ripple co-founder Chris Larsen’s backing of Yellow has drawn attention, Khan clarified that the technical advantages of XRP were the primary motivator: “The main reason we integrated the XRPL EVM sidechain is that we wanted to integrate XRP. That’s the number one bit—the main thing we wanted to do.”
🚨Why did @Yellow Network choose $XRP?
Hint: Not only because the @Ripple cofounder Chris Larsen invested. #Clip3 with @DeFi_Pop💛 pic.twitter.com/QfE5CZFpib
— 🌸Crypto Eri ~ Carpe Diem (@sentosumosaba) December 28, 2025
Solving the Liquidity Problem
Khan emphasized that the integration directly addresses one of the biggest challenges in tokenized asset trading: liquidity. “Integrating it means that we can solve the liquidity problem for real-world assets,” she said.
By using XRP as a settlement layer on Yellow’s layer-three clearing network, the platform can execute trades off-chain through state channels, batch them efficiently, and then settle on-chain via the XRPL EVM sidechain. This architecture enables high-frequency trading that was previously unattainable for illiquid assets.
Speed, Reliability, and Ethereum Compatibility
The XRPL EVM sidechain offers multiple advantages that make it a natural fit for Yellow Network. Khan highlighted, “It brings the advantages like speed, reliability, equity, and of course the Ethereum compatibility.”
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This ensures seamless interoperability with existing DeFi protocols while maintaining fast and reliable transaction processing. By leveraging XRP as the gas token for the clearing network, Yellow can optimize transaction efficiency without compromising security or transparency.
Off-Chain Execution and On-Chain Settlement
Khan explained that trades execute off-chain via other state channels, they batch them, and then settle on the XRPL EVM sidechain. This approach minimizes network congestion, accelerates transaction throughput, and ensures that all trades ultimately benefit from the security and immutability of the XRPL EVM.
Strategic Implications for Yellow Network
Integrating the XRPL EVM sidechain positions Yellow Network as a leading platform for tokenized asset trading. By solving liquidity challenges and enabling high-frequency, real-time trading, the network is now capable of scaling to meet institutional and retail demand.
Khan concluded that the integration is a “perfect fit for Yellow”. This underscores the strategic value of leveraging XRP’s speed, reliability, and Ethereum-compatible infrastructure.
In summary, Yellow Network’s choice of XRP is a deliberate, technically driven strategy aimed at revolutionizing real-world asset trading, balancing performance, security, and interoperability within a single robust ecosystem.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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