Company: TOXR
Filing Date: 2025-10-10
Form Type: S-1/A
Source: 0001213900-25-098141
Chunk: 125

Company: 21Shares XRP ETF
Filing Date: 2025-10-10
Form: S-1/A
Chunk 125
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, partnerships, and liquidity initiatives. Through these efforts, Ripple serves as the commercial
driver of XRP adoption, linking the protocol to traditional financial institutions and payment networks.

In contrast, the XRP Ledger
Foundation, established in 2020 as a non-profit, ensures the XRP Ledger’s long-term neutrality and decentralization. Its core mandate
is to support the technical development and governance of the XRP Ledger as open-source infrastructure, leveraging its fast, low-cost
consensus protocol. The XRP Ledger Foundation maintains validator infrastructure, oversees network health, administers developer grants,
and promotes education and adoption among users and developers. It acts as a neutral steward, coordinating upgrades, fostering transparent
governance, and ensuring decision-making reflects the broader community, including a diverse validator network, rather than a single
corporate interest.

Together, Ripple Labs and
the XRP Ledger Foundation form a complementary ecosystem. Ripple advances commercial adoption through financial products and partnerships,
navigating regulatory landscapes to build institutional trust, while the XRP Ledger Foundation safeguards the open, decentralized nature
of the XRP Ledger. This separation allows Ripple to focus on practical use cases for XRP in global finance, while the XRP Ledger Foundation
ensures the ledger remains a public, permissionless network governed by its community. Their collaboration continues to shape XRP’s
role in bridging traditional finance and decentralized blockchain infrastructure.

Historically, the development
of the source code of the XRP Ledger has been overseen by Ripple Labs, Inc. (“Ripple Labs”) and other core developers. No
single entity controls the XRP Ledger, although Ripple Labs, the creator of the XRP Ledger, maintains significant influence over the
operations of the XRP Ledger’s operations and maintains one of the networks validator nodes. The XRP Ledger is administered through
a network of independent nodes that validate 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