Company: HBAR
Filing Date: 2025-09-09
Form Type: S-1
Source: 0000950170-25-113803
Chunk: 16

Company: Grayscale Hedera Trust ETF
Filing Date: 2025-09-09
Form: S-1
Chunk 16
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 Policy available to shareholders on the Sponsor’s website. The Trust (through the Custodian) will maintain control and remain the record and beneficial owner of the staked tokens at all times, and the tokens will remain associated with the Trust’s wallet.

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See “Description of the Shares—Staking—Staking Arrangements and Provider-Facilitated Staking Model” for more information.

Security and Controls

The Trust’s Custodian has multiple layers of security protocols designed to protect the Trust’s assets from unauthorized access or transfer, which will remain in place when the Trust’s HBAR is staked.

The Trust’s HBAR will be staked directly from the Trust’s wallets and will not be transferred to any other wallet to be staked. The Hedera protocol (a) mandates that the executor of the staking transaction (i.e., the Sponsor on behalf of the Trust) can execute the withdraw function at any time through the Trust’s wallets administered by the Custodian and (b) limits the activities of the Staking Provider to executing only those activities specified by the protocol, such as staking, un-staking and performing validation activities. Accordingly, the Staking Provider will not have any control over the Trust’s staked HBAR other than to stake or un-stake HBAR at the direction of the Sponsor. In particular, the Staking Provider will not be authorized to leverage or rehypothecate the Trust’s HBAR tokens. The Staking Provider will also not be able to change the designated wallet addresses on the Hedera Network to which Staking Consideration shall be sent.

In addition, the proposed Staking Arrangements will not alter the Trust’s current custody environment or security procedures. The Sponsor expects that the Staking Arrangements will serve as an addendum to the Custodial Services Agreement between the Trust and the Custodian, and the controls currently in place between the Sponsor and the Custodian will also govern the activities related to staking and un-staking HBAR, as outlined in the Staking Arrangements.

See “Description of the Shares—Staking—Security and Controls” and “Risk Factors—Risk Factors Related to Staking” for more information.

Hedera History

HBAR is a digital asset that is created and transmitted through the operations of the peer-to-peer Hedera network (the “Hedera Network”), a decentralized network of computers that operates on cryptographic protocols. No single entity owns or operates the Hedera Network, the