Company: TOXR
Filing Date: 2025-08-22
Form Type: S-1/A
Source: 0001213900-25-079981
Chunk: 160

Company: 21Shares XRP ETF
Filing Date: 2025-08-22
Form: S-1/A
Chunk 160
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, store,
and manage key fragments. HSMs enforce role-based access controls and support transaction signing workflows across designated approval
parties. CDS is a high-assurance security architecture originally developed for sensitive government environments. It enhances the integrity
of cold storage systems by strictly isolating secure processing domains and preventing unauthorized cross-network interactions. These
technologies operate alongside cold storage, where private key material remains entirely offline and physically secured in air-gapped
environments. This layered approach ensures that private keys are protected.

Cold storage is a safeguarding
method with multiple layers of protections and protocols, by which the private key(s) corresponding to the Trust’s XRP is
(are) generated and stored in an offline manner. Private keys are generated in offline computers that are not connected to the internet
so that they are resistant to being hacked. By contrast, in hot storage, the private keys are held online, where they are more accessible,
leading to more efficient transfers, though they are potentially more vulnerable to being hacked. There is no limit on the size of each
cold storage address, and the XRP Custodian will generally keep a substantial portion of the Trust’s XRP in cold storage on an
ongoing basis. However, it is possible that, from time to time, portions of the Trust’s XRP will be held outside of cold storage
temporarily in the Trading Balance maintained by the Prime Broker as part of trade facilitation in connection with creations and redemptions
of Baskets, to sell XRP including to pay Trust expenses, or to pay the Sponsor Fee, as necessary. The Trust’s XRP held in the Cold
Vault Balance by the XRP Custodian are held in segregated wallets and therefore are not commingled with the XRP Custodian’s 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 Custodian 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 Custodian can upload the fully signed transaction to an online network and transfer the XRP. Such
private keys are