Company: TOXR
Filing Date: 2025-08-22
Form Type: S-1/A
Source: 0001213900-25-079981
Chunk: 59

Company: 21Shares XRP ETF
Filing Date: 2025-08-22
Form: S-1/A
Chunk 59
---
 and appointed the FDIC as receiver. A joint statement by the U.S.
Department of the Treasury (the “U.S. Treasury Department”), the Federal Reserve and the FDIC on March 12, 2023, stated
that depositors in Signature and SVB will have access to all of their funds, including funds held in deposit accounts, in excess of the
insured amount. On May 1, 2023, First Republic Bank was closed by DFPI, which appointed the FDIC as receiver. Following a bidding
process, the FDIC entered into a purchase and assumption agreement with JPMorgan Chase Bank, National Association, to acquire the substantial
majority of the assets and assume certain liabilities of First Republic Bank from the FDIC.

<div align='center'>25</div>

The Prime Broker has historically
maintained banking relationships with Silvergate Bank and Signature Bank. While the Sponsor does not believe there is a direct risk to
the Trust’s assets from the failures of Silvergate Bank or Signature Bank, in the future, changing circumstances and market conditions,
some of which may be beyond the Trust’s or the Sponsor’s control, could impair the Trust’s ability to access the Trust’s
cash held with the Prime Broker. If the Prime Broker were to experience financial distress or its financial condition is otherwise affected
by the failure of its banking partners, the Prime Broker’s ability to provide services to the Trust could be affected. Moreover,
the future failure of a bank at which the Prime Broker maintains customer cash could result in losses to the Trust, to the extent the
balances are not subject to deposit insurance, notwithstanding the regulatory requirements to which the Prime Broker is subject or other
potential protections.

If the Custodial Services Agreement or Prime Broker Agreement is terminated or the XRP Custodian or Prime Broker fails to provide services as required, the Trustee may need to find and appoint a replacement custodian, which could pose a challenge to the safekeeping of the Trust’s XRP, and the Trust’s ability to continue to operate may be adversely affected.

The Trust is dependent on the
XRP Custodian, which is Coinbase Custody, and the Prime Broker, Coinbase Inc. to operate. Coinbase Custody performs essential functions
in terms of safekeeping the Trust’s XRP in the Vault Balance, and its affiliate, Coinbase Inc., in its capacity as Prime Broker,
facilitates the selling of XRP by the Trust to pay the Sponsor’s Fee and, to the extent applicable, other Trust expenses