Company: TOXR
Filing Date: 2025-11-20
Form Type: S-1/A
Source: 0001213900-25-112826
Chunk: 219

Company: 21Shares XRP ETF
Filing Date: 2025-11-20
Form: S-1/A
Chunk 219
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RP Custodians keep custody of all the Trust’s XRP, other than which is maintained in the Trading Balance with the Prime Broker, in the Cold Vault Balance. The XRP Custodians keep a substantial portion of the private keys associated with the Trust’s XRP in “cold storage” or similarly secure technology. Cold storage is a safeguarding method with multiple layers of protections and protocols, by which the private key(s) corresponding to the Trust’s XRP is (are) generated and stored in an offline manner. Private keys are generated in offline computers that are not connected to the internet so that they are resistant to being hacked. By contrast, in hot storage, the private keys are held online, where they are more accessible, leading to more efficient transfers, though they are potentially more vulnerable to being hacked. While the XRP Custodians will generally keep a substantial portion of the Trust’s XRP in cold storage on an ongoing basis, it is possible that, from time to time, portions of the Trust’s XRP will be held outside of cold storage temporarily in the Trading Balance maintained by the Prime Broker as part of trade facilitation in connection with creations and redemptions of Baskets, to sell XRP including to pay Trust expenses, or to pay the Sponsor Fee, as necessary. The Trust’s XRP held in the Cold Vault Balance by the XRP Custodians are held in segregated wallets and therefore are not commingled with the XRP Custodians’ or other customer assets.

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Cold storage of private keys may involve keeping such keys on a non-networked computer or electronic device or storing the public key and private keys on a storage device or printed medium and deleting the keys from all computers. The XRP Custodians may receive deposits of XRP but may not send XRP without use of the corresponding private keys. To send XRP when the private keys are kept in cold storage, unsigned transactions must be physically transferred to the offline cold storage facility and signed using a software/hardware utility with the corresponding offline keys. At that point, the XRP Custodians can upload the fully signed transaction to an online network and transfer the XRP. Such private keys are stored in cold storage facilities within the United States and Europe, exact locations of which are not disclosed for security reasons. A limited number of employees at the XRP Custodians are involved in private key management operations, and the XRP Custodians have each represented that no single individual has