Company: TOXR
Filing Date: 2025-12-10
Form Type: 424B3
Source: 0001213900-25-120172
Chunk: 80

Company: 21Shares XRP ETF
Filing Date: 2025-12-10
Form: 424B3
Chunk 80
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 will become a dominant form of cross-border payments, store of value or method of exchange. XRP is also supported by fewer exchanges than more established digital assets, which could impact its liquidity.

Competition from other consortia or private blockchains could have a negative impact on the price of XRP and adversely affect an investment in the Shares.

Many consortia and financial
institutions that are potential XRP users are researching and investing resources into private or permissioned blockchain platforms that
could compete with XRP to facilitate cross-currency transactions. These initiatives, such as Consensys’ Quorum, offer financial
payment networks and have partnered with many financial institutions. However, unlike the XRP Ledger, these platforms do not necessarily
require a native digital assets like XRP. In evaluating competing distributed ledger technologies, financial institutions may prefer
permissioned blockchains without digital currencies over the XRP Ledger and XRP in the future. If financial institutions choose to use
permissioned blockchains without digital currencies, the price of XRP may be negatively affected, which would adversely affect an investment
in the Shares.

Competition from central bank digital currencies (“CBDCs”) could adversely affect the value of XRP and other digital assets.

Central banks have introduced
digital forms of legal tender. China’s CBDC project, known as Digital Currency Electronic Payment, has reportedly been tested in
a live pilot program conducted in multiple cities in China. A recent study published by the Bank for International Settlements estimated
that at least 36 central banks have published retail or wholesale CBDC work ranging from research to pilot projects. Whether or not they
incorporate blockchain or similar technology, CBDCs, as legal tender in the issuing jurisdiction, could have an advantage in competing
with, or replacing, XRP and other digital assets as a medium of exchange or store of value. Central banks and other governmental entities
have also announced cooperative initiatives and consortia with private sector entities, with the goal of leveraging blockchain and other
technology to reduce friction in cross-border and interbank payments and settlement, and commercial banks and other financial institutions
have also recently announced a number of initiatives of their own to incorporate new technologies, including blockchain and similar technologies,
into their payments and settlement activities, which could compete with, or reduce the demand for XRP. As a result of any of the
foregoing factors, the value of XRP could decrease, which could adversely affect an investment in the Trust.

Prices of XRP may be affected due to stablecoins,