Company: TOXR
Filing Date: 2025-08-22
Form Type: S-1/A
Source: 0001213900-25-079981
Chunk: 21

Company: 21Shares XRP ETF
Filing Date: 2025-08-22
Form: S-1/A
Chunk 21
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 has never been connected to the internet. Storing the private key offline minimizes the risk of the XRP being stolen. The Sponsor expects that nearly all of the Trust’s assets and private keys will be held in cold storage of the XRP Custodian on an ongoing basis. In connection with creations or redemptions, the Trust will, under most circumstances, process creations and redemptions by transferring XRP from its Cold Vault Balance to and/or from an XRP Counterparty. From time to time, portions of the Trust’s XRP temporarily may be held outside of cold storage in the Trading Balance maintained by Coinbase, Inc. (the “Prime Broker”) or an XRP Counterparty, including in circumstances in which it is necessary in connection with creations or redemptions of Baskets or to sell XRP to pay Trust expenses.

| ● | Multiple Private Keys:    All private                                                                                                            
 keys are securely stored using multiple layers of high-quality encryption and in Custodian-owned offline hardware vaults in secure environments. 
 No customers or third parties are given access to the XRP Custodian’s private keys. The use of multiple private keys makes retrieving            
 XRP from the wallet more difficult, and aims to further reduce the risk of hacking theft and/or robbery.                                         |

| ● | Whitelisting:    Transactions are                                                                                                        
 only sent to vetted, known addresses. The XRP Custodian’s platform supports pre-approval and test transactions. The XRP Custodian        
 requires authentication when adding or removing addresses for whitelisting. All instructions to initiate a whitelist addition or removal 
 must be submitted via the Coinbase Custody platform. When a whitelist addition or removal request is initiated, the initiating user will 
 be prompted to authenticate their request using a two-factor authentication key. A consensus mechanism on the Coinbase Custody platform  
 dictates how many approvals are required in order for the consensus to be achieved to add or remove a whitelisted address. Only when     
 the consensus is met is the underlying transaction considered officially approved. An account’s roster and user roles are maintained     
 by the XRP Custodian in a separate log, an Authorized User List (“AUL”). Any changes to the account’s roster must be                     
 reflected on an updated AUL first and executed by an authorized signatory.                                                               |

| ● | Audit Trails:    Audit trails exist                                                                                                      
 for all movement of XRP within Custodian-controlled XRP wallets and are audited annually for accuracy and completeness by an independent 
 external audit firm.                                                                                                                     |

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