Company: TOXR
Filing Date: 2025-12-08
Form Type: S-1/A
Source: 0001213900-25-118924
Chunk: 223

Company: 21Shares XRP ETF
Filing Date: 2025-12-08
Form: S-1/A
Chunk 223
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 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 Custodians are held in segregated wallets and therefore are not commingled with the XRP Custodians’ or other customer assets.

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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. 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 the 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 each represented that no single individual has access to full private keys.

The XRP Custodians’ internal audit team performs periodic internal audits over custody operations, and the XRP Custodians have represented that Systems and Organizational Control (“SOC”) attestations covering private key management controls are also performed on the XRP Custodians by an external provider.

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 transfers. The
insurance maintained by each of the XRP Custodians is shared among all such respective XRP Custodians’ customers, is not specific
to the Trust or to customers holding XRP with the XRP Custodians and 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 are the property of the Trust. The