Company: TOXR
Filing Date: 2025-11-20
Form Type: S-1/A
Source: 0001213900-25-112826
Chunk: 169

Company: 21Shares XRP ETF
Filing Date: 2025-11-20
Form: S-1/A
Chunk 169
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, though they are potentially more vulnerable to being hacked. There is no limit on the size of each
cold storage address, and the XRP Custodians will generally keep a substantial portion of the Trust’s XRP in cold storage on an
ongoing basis. However, it is possible that, from time to time, portions of the Trust’s XRP will be held 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.

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. In order 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 a 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 represented that no single individual of any XRP Custodian has access to full private keys.

The XRP Custodians’
internal audit teams perform periodic internal audits over custody operations, and the XRP Custodians have represented that SOC attestations
covering private key management controls are also performed on the XRP Custodians by external providers.

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 XRP Custodian is shared