Company: TOXR
Filing Date: 2025-12-10
Form Type: 424B3
Source: 0001213900-25-120172
Chunk: 8

Company: 21Shares XRP ETF
Filing Date: 2025-12-10
Form: 424B3
Chunk 8
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 company and the
Anchorage Custodian is chartered as a South Dakota state limited liability trust company and as a federally chartered crypto bank. The
XRP Custodians provide custody and trade execution services for digital assets. The XRP Custodians are not Federal Deposit Insurance
Corporation (“FDIC”)-insured but they carry insurance provided by private insurance carriers. The Trust, the Sponsor and
the service providers will not loan or pledge the Trust’s assets, nor will the Trust’s assets serve as collateral for any
loan or similar arrangement, other than in connection with the Post-Trade Financing Agreement. The Trust will not invest in derivatives.
The Sponsor believes that the Shares are designed to provide investors with a cost-effective and convenient way to invest in XRP without
purchasing, holding and trading XRP directly.

The amount of XRP represented
by the Shares is expected to decline over time because of the transfer of the Trust’s XRP to pay the Sponsor Fee and other liabilities,
regardless of whether the trading price of the Shares rise or fall.

XRP and the XRP Ledger

XRP is a digital asset that
is created and transmitted through the operations of the XRP Ledger, a distributed ledger upon which XRP transactions are processed and
settled. XRP can be used to pay for goods and services or it can be converted to fiat currencies, such as the U.S. dollar. The XRP
Ledger is based on a shared public ledger similar to the Bitcoin network. However, the XRP Ledger differentiates itself from other digital
asset networks in that its stated primary function is transactional utility, not store of value. The XRP Ledger is designed to be a global
real-time payment and settlement system. As a result, the XRP Ledger and XRP aim to improve the speed at which parties on the network
may transfer value while also reducing the fees and delays associated with the traditional methods of interbank payments.

No single entity controls
the XRP Ledger. Instead, a network of independent nodes validates transactions pursuant to a consensus-based algorithm, the XRP Ledger
Consensus Protocol. 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 consensus