Company: TOXR
Filing Date: 2025-08-22
Form Type: S-1/A
Source: 0001213900-25-079981
Chunk: 82

Company: 21Shares XRP ETF
Filing Date: 2025-08-22
Form: S-1/A
Chunk 82
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have also announced cooperative initiatives and consortia with private sector entities, with the goal of leveraging blockchain and other
technology to reduce friction in cross-border and interbank payments and settlement, and commercial banks and other financial institutions
have also recently announced a number of initiatives of their own to incorporate new technologies, including blockchain and similar technologies,
into their payments and settlement activities, which could compete with, or reduce the demand for, XRP. As a result of any of the
foregoing factors, the value of XRP could decrease, which could adversely affect an investment in the Trust.

Prices of XRP may be affected due to stablecoins, the activities of stablecoin issuers and their regulatory treatment.

While the Trust does not
invest in stablecoins, it may nonetheless be exposed to these and other risks that stablecoins pose for the XRP market through its investment
in XRP. Stablecoins are digital assets designed to have a stable value over time as compared to typically volatile digital assets, and
are typically marketed as being pegged to a fiat currency, such as the U.S. dollar. Although the prices of stablecoins are intended
to be stable, in many cases, their prices fluctuate, sometimes significantly. This volatility has in the past apparently impacted the
price of XRP. Stablecoins are a relatively new phenomenon and it is impossible to know all of the risks that they could pose to
participants in the XRP market. In addition, some have argued that some stablecoins, particularly Tether, are improperly issued without
sufficient backing in a way that could cause artificial rather than genuine demand for XRP, raising its price, and also argue that those
associated with certain stablecoins that are be involved in laundering money. On February 17, 2021, the New York Attorney General
entered into an agreement with Tether’s operators, requiring them to cease any further trading activity with New York persons
and pay $18.5 million in penalties for false and misleading statements made regarding the assets backing Tether. On October 15,
2021, the CFTC announced a settlement with Tether’s operators in which they agreed to pay $42.5 million in fines to settle
charges that, among others, Tether’s claims that it maintained sufficient U.S. dollar reserves to back every Tether stablecoin
in circulation with the “equivalent amount of corresponding fiat currency” held by Tether were untrue.

Stablecoins are reliant
on the U.S. banking system and U