Company: TOXR
Filing Date: 2025-08-22
Form Type: S-1/A
Source: 0001213900-25-079981
Chunk: 123

Company: 21Shares XRP ETF
Filing Date: 2025-08-22
Form: S-1/A
Chunk 123
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RP valued using techniques
other than those employed by the Pricing Benchmark, including XRP investments that are “fair valued,” may differ from the
value established by the Pricing Benchmark.

<div align='center'>56

XRP, XRP MARKETS AND REGULATION OF XRP</div>

This section of the Prospectus
provides a more detailed description of XRP, including information about the historical development of XRP, how a person holds XRP, how
to use XRP in transactions, how to trade XRP, the spot markets where XRP can be bought, held and sold, the XRP OTC market and XRP validating.

XRP and XRP Ledger

XRP is a digital asset that
is created and transmitted through the operations of the XRP Ledger, a distributed ledger upon which XRP transactions are processed and
settled. XRP can be used to pay for goods and services or it can be converted to fiat currencies, such as the U.S. dollar. The XRP
Ledger is based on a shared public ledger, the XRP Ledger, similar to the Bitcoin network. However, the XRP Ledger differentiates itself
from other digital asset networks in that its stated primary function is transactional utility, not store of value. The XRP Ledger is
designed to be a global real-time payment and settlement system. As a result, the XRP Ledger and XRP aim to improve the speed at which
parties on the network may transfer value while also reducing the fees and delays associated with the traditional methods of interbank
payments.

No single entity controls the
XRP Ledger. Instead, a network of independent nodes validates transactions pursuant to the Ripple Protocol Consensus Algorithm. It is
this mechanism, as opposed to the proof-of-work mechanism utilized by the Bitcoin blockchain, that allows the XRP Ledger to be fast, energy-efficient
and scalable, and therefore suitable for its most prominent use case, the facilitation of cross-border financial transactions. Unlike
proof-of-work systems, which require massive computational power to secure the network, the Ripple Protocol Consensus Algorithm utilized
by the XRP Ledger is extremely lightweight in terms of energy usage, as it relies on trusted validators rather than mining. The XRP Ledger
can handle up to 1,500 transactions per second, far more than the Bitcoin or Ethereum blockchain. This makes the XRP Ledger suitable for
high-volume use cases, such as cross-border payments. Lastly, because validators do not need to spend resources