Company: TOXR
Filing Date: 2025-08-22
Form Type: S-1/A
Source: 0001213900-25-079981
Chunk: 126

Company: 21Shares XRP ETF
Filing Date: 2025-08-22
Form: S-1/A
Chunk 126
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 ledger
is considered valid. All participating validators then update their copy of the ledger with the new, agreed-upon transactions. The final
ledger version is broadcast to all nodes, and it becomes the new “official” state of the ledger.

Prior to engaging 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.

Neither the recipient nor the
sender reveals its private keys in a transaction, because the private key authorizes transfer of the funds in that address to other users.
Therefore, if a user loses his or her private key, the user may permanently lose access to the XRP contained in the associated address.
Likewise, XRP is irre