Company: TOXR
Filing Date: 2025-10-10
Form Type: S-1/A
Source: 0001213900-25-098141
Chunk: 10

Company: 21Shares XRP ETF
Filing Date: 2025-10-10
Form: S-1/A
Chunk 10
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 XRP can be used to pay for goods and services or it can be converted to fiat currencies, such as the U.S. dollar. The XRP
Ledger is based on a shared public ledger similar to the Bitcoin network. However, the XRP Ledger differentiates itself from other digital
asset networks in that its stated primary function is transactional utility, not store of value. The XRP Ledger is designed to be a global
real-time payment and settlement system. As a result, the XRP Ledger and XRP aim to improve the speed at which parties on the network
may transfer value while also reducing the fees and delays associated with the traditional methods of interbank payments.

No single entity controls
the XRP Ledger. Instead, a network of independent nodes validates transactions pursuant to a consensus-based algorithm, the Ripple Protocol
Consensus Algorithm. It is this mechanism, as opposed to the proof-of-work mechanism utilized by the Bitcoin blockchain, that allows
the XRP Ledger to be fast, energy-efficient and scalable, and therefore suitable for its most prominent use case, the facilitation of
cross-border financial transactions. Unlike proof-of-work systems, which require massive computational power to secure the network, the
Ripple Protocol Consensus Algorithm utilized by the XRP Ledger is extremely lightweight in terms of energy usage, as it relies on trusted
validators rather than mining. The XRP Ledger can handle up to 1,500 transactions per second, far more than the Bitcoin or Ethereum blockchains.
This makes the XRP Ledger suitable for high-volume use cases, such as cross-border payments. Lastly, because validators do not need to
spend resources on mining, transaction fees are extremely low (typically a fraction of a cent per transaction).

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Transactions are validated
on the XRP Ledger by a network of independent validator nodes. These nodes do not mine new blocks but participate in a consensus process
to ensure that transactions are valid and correctly ordered on the ledger. Any node can be a validator, but for practical purposes, the
XRP Ledger depends on a list of trusted validators known as the Unique Node List or “UNL.” Validators are entities (which
can be individuals, institutions or other organizations) that run nodes to participate in the consensus process. These validators ensure
the integrity and accuracy of the ledger. Each node in the network maintains a Unique Node List — a list of other validators
that the node trusts to reliably validate transactions. The XRP Ledger’s architecture means that