Company: TOXR
Filing Date: 2025-10-10
Form Type: S-1/A
Source: 0001213900-25-098141
Chunk: 129

Company: 21Shares XRP ETF
Filing Date: 2025-10-10
Form: S-1/A
Chunk 129
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 in XRP
transactions directly on the XRP Ledger, a user generally must first install on its computer or mobile device an XRP Ledger software
program that will allow the user to generate a private and public key pair associated with an XRP address. The XRP Ledger software program
and the XRP address also enable the user to connect to the XRP Ledger and transfer XRP to, and receive XRP from, other users.

Each XRP Ledger address, or
wallet, is associated with a unique “public key” and “private key” pair. To receive XRP, the XRP recipient must
provide its public key to the party initiating the transfer. This activity is analogous to a recipient for a transaction in U.S. dollars
providing a routing address in wire instructions to the payor so that cash may be wired to the recipient’s account. The payor approves
the transfer to the address provided by the recipient by “signing” a transaction that consists of the recipient’s public
key with the private key of the address from where the payor is transferring the XRP. The recipient, however, does not make public
or provide to the sender its related private key.

XRP can be held in
different types of wallets, including hardware wallets, software wallets and custodial wallets provided by digital asset trading platforms.
The wallet essentially holds the private keys that control the account on the XRP Ledger. The private key is crucial for signing transactions
on the ledger. Whoever possesses the private key associated with an XRP Ledger account effectively controls the XRP held by that account.
While XRP is the native asset, the XRP Ledger also supports the holding and transferring of other assets (like USD, EUR, or other digital
assets) through a system of trust lines. However, these other assets are not XRP itself; they are IOUs issued by institutions or individuals
on the ledger. Wallets that are used to store cryptographic keys can be “hot” or “cold.” A hot wallet is connected
to the internet, and is thus readily available to facilitate trading, but may be more vulnerable to hacking. A cold wallet is a wallet
that stores cryptographic keys offline, such as on a computer that has no internet access, a segregated piece of hardware, or a piece
of paper.

Neither the recipient
nor the sender reveals their private keys in a transaction, because the private key authorizes transfer of the funds in that address
to other users. Therefore, if a user