Company: TOXR
Filing Date: 2025-08-22
Form Type: S-1/A
Source: 0001213900-25-079981
Chunk: 130

Company: 21Shares XRP ETF
Filing Date: 2025-08-22
Form: S-1/A
Chunk 130
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 XRP Ledger. The digital asset trading platform
ordinarily does not transfer XRP to the investor on the XRP Ledger unless the investor makes a request to the exchange to withdraw the
XRP in its platform trading account to an off-platform XRP wallet.

Outside of the spot markets,
XRP can be traded OTC. The OTC market is largely institutional in nature, and OTC market participants generally consist of institutional
entities, such as firms that offer two-sided liquidity for XRP, investment managers, proprietary trading firms, high-net-worth individuals
that trade XRP on a proprietary basis, entities with sizeable XRP holdings, and family offices. The OTC market provides a relatively flexible
market in terms of quotes, price, quantity, and other factors, although it tends to involve large blocks of XRP. The OTC market has
no formal structure and no open-outcry meeting place. Parties engaging in OTC transactions will agree upon a price — often
via phone or email — and then one of the two parties will then initiate the transaction. For example, a seller of XRP
could initiate the transaction by sending the XRP to the buyer’s XRP address. The buyer would then wire U.S. dollars to the
seller’s bank account. OTC trades are sometimes hedged and eventually settled with concomitant trades on digital asset trading platforms.

Limits on XRP Supply

Unlike other digital assets
such as bitcoin or ether, XRP was not mined gradually over time. Instead, all 100 billion XRP tokens were created at the time of
the XRP Ledger’s launch in 2012. This means that every XRP token that exists today was generated from the outset, without the need
for a mining process. Of the 100 billion XRP generated by the XRP Ledger’s code, the founders of Ripple Labs retained 20 billion
XRP and the rest, nearly 80 billion XRP, was provided to Ripple Labs.

In 2017, to address concerns
about the large portion of XRP held by Ripple Labs, the company introduced an escrow mechanism to lock up a significant portion of its
XRP holdings. Under this mechanism, Ripple Labs placed 55 billion XRP (55% of the total supply) into a series of time-locked escrow
accounts. The escrow releases 1 billion XRP per month over 55 months. This process adds a level of predictability and transparency
about how much XRP can enter