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

Company: 21Shares XRP ETF
Filing Date: 2025-08-22
Form: S-1/A
Chunk 22
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In addition to the above measures,
in accordance with the Custodial Services Agreement, XRP held in custody with the XRP Custodian will be segregated from both the proprietary
property of the XRP Custodian and the assets of any other customer in accounts that clearly identify the Trust as the owner of the accounts.
Therefore, in the event of an insolvency of the XRP Custodian, assets held in the segregated accounts would not become property of the
XRP Custodian’s estate and would not be available to satisfy claims of creditors of the XRP Custodian.

The XRP Custodian maintains
an internal audit team that performs periodic internal audits over custody operations. Systems and Organizational Control (“SOC”)
attestations are also performed on the XRP Custodian’s services. The SOC 1 Type 2 and SOC 2 Type 2 reports
produced cover private key management controls. A SOC 1 Type 2 report addresses the controls at a service organization that
are likely to be relevant to user entities’ internal control over financial reporting. A SOC 2 Type 2 report addresses
controls at a service organization relevant to security, availability, processing integrity, confidentiality, or privacy in order to
support users’ evaluations of their own systems of internal control.

The Transfer Agent will facilitate
the settlement of Shares in response to the placement of creation orders and redemption orders from Authorized Participants. The Trust
generally does not intend to hold cash or cash equivalents. However, there may be situations where the Trust will hold cash on a temporary
basis, including in connection with the creation and redemption process.

The Trust has entered into
the Cash Custody Agreement, pursuant to which the Cash Custodian will establish and maintain cash account(s) for the Trust and, upon
instructions from the Sponsor acting on behalf of the Trust, facilitate cash transfers and cash payments from the Trust’s account(s).

For more information on the
Trust’s custody arrangements with the XRP Custodian and the Prime Broker, see “Custody of the Trust’s Assets”
and “Prime Broker” below.

NAV Determinations

As described in more detail
below in “NAV Determinations,” the Administrator daily calculates its NAV and NAV per Share on each day that
the Exchange is open for regular trading, as promptly as practicable after 4:00 p.m. ET, based on the Pricing Benchmark. In determining
the Trust’s NAV, the Administrator values the XRP held by the Trust based