Company: TOXR
Filing Date: 2025-12-10
Form Type: 424B3
Source: 0001213900-25-120172
Chunk: 128

Company: 21Shares XRP ETF
Filing Date: 2025-12-10
Form: 424B3
Chunk 128
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 fees and delays associated with the traditional methods of
interbank payments. As of December 6, 2025, XRP was the fourth largest digital asset in terms
of market capitalization, with a market capitalization of approximately $122.9 billion compared
to bitcoin’s approximate market capitalization of $1.79 trillion.

Ripple Labs and the XRP Ledger
Foundation play distinct yet interconnected roles within the XRP ecosystem. Ripple Labs focuses on commercializing the XRP Ledger through
enterprise-grade financial products like On-Demand Liquidity and Ripple’s stablecoin RLUSD, integrated via its RippleNet network
for global payments. Ripple Labs manages a large escrowed XRP supply, releasing tokens periodically to fund ecosystem development, partnerships,
and liquidity initiatives. Through these efforts, Ripple Labs serves as the commercial driver of XRP adoption, linking the protocol to
traditional financial institutions and payment networks.

In contrast, the XRP Ledger
Foundation, established in 2020 as a non-profit, ensures the XRP Ledger’s long-term neutrality and decentralization. Its core mandate
is to support the technical development and governance of the XRP Ledger as open-source infrastructure, leveraging its fast, low-cost
consensus protocol. The XRP Ledger Foundation maintains validator infrastructure, oversees network health, administers developer grants,
and promotes education and adoption among users and developers. It acts as a neutral steward, coordinating upgrades, fostering transparent
governance, and ensuring decision-making reflects the broader community, including a diverse validator network, rather than a single
corporate interest.

Together, Ripple Labs and
the XRP Ledger Foundation form a complementary ecosystem. Ripple Labs advances commercial adoption through financial products and partnerships,
navigating regulatory landscapes to build institutional trust, while the XRP Ledger Foundation safeguards the open, decentralized nature
of the XRP Ledger. This separation allows Ripple Labs to focus on practical use cases for XRP in global finance, while the XRP Ledger
Foundation ensures the ledger remains a public, permissionless network governed by its community. Their collaboration continues to shape
XRP’s role in bridging traditional finance and decentralized blockchain infrastructure.

Historically, the development
of the source code of the XRP Ledger has been overseen by Ripple Labs and other core developers. No single entity controls the XRP Ledger,
although Ripple Labs, the creator of the XRP Ledger, maintains significant influence over the operations of the XRP Ledger’s operations
and maintains one of the networks validator nodes. The XRP Ledger is administered