Company: TOXR
Filing Date: 2025-11-07
Form Type: S-1/A
Source: 0001213900-25-107665
Chunk: 170

Company: 21Shares XRP ETF
Filing Date: 2025-11-07
Form: S-1/A
Chunk 170
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ingled with the XRP Custodians’ or
other customer assets.

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. In order 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 a 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 represented that no single individual of any XRP Custodian has access to full private keys.

The XRP Custodians’
internal audit teams perform periodic internal audits over custody operations, and the XRP Custodians have represented that SOC attestations
covering private key management controls are also performed on the XRP Custodians by external providers.

The XRP Custodians maintain
commercial crime insurance policies, which are intended to cover the loss of client assets held in cold storage, including from employee
collusion or fraud, physical loss including theft, damage of key material, security breaches or hacks, and fraudulent transfer. The insurance
maintained by each XRP Custodian is shared among all of such XRP Custodian’s customers, and are not specific to the Trust or to
customers holding XRP with any such XRP Custodian, and collectively may not be available or sufficient to protect the Trust from all
possible losses or sources of losses.

XRP held in the Trust’s
account with the XRP Custodians is the property of the Trust. The Trust, the Sponsor and the service providers will not loan or pledge
the Trust’s assets nor will the Trust’s assets serve as collateral for any loan or similar arrangement, other than in connection
with the Post-Trade Financing Agreement. The Trust will not utilize leverage, derivatives or any similar arrangements in seeking to meet
its investment objective.

In the event of a fork,
the Custodial Services Ag