Company: TOXR
Filing Date: 2025-10-10
Form Type: S-1/A
Source: 0001213900-25-098141
Chunk: 166

Company: 21Shares XRP ETF
Filing Date: 2025-10-10
Form: S-1/A
Chunk 166
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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 Custodian are held in segregated wallets and therefore are not commingled
with the XRP Custodian’s 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 Custodian 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 Custodian can upload the 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 Custodian are involved in private key management operations, and the XRP
Custodian has represented that no single individual has access to full private keys.

The XRP Custodian’s
internal audit team performs periodic internal audits over custody operations, and the XRP Custodian has represented that SOC attestations
covering private key management controls are also performed on the XRP Custodian by an external provider.

The XRP Custodian maintains
a commercial crime insurance policy, which is 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 breach or hack, and fraudulent transfer. The insurance
maintained by the XRP Custodian is shared among all of the XRP Custodian’s customers, is not specific to the Trust or to customers
holding XRP with the XRP Custodian, and may not be available or sufficient to protect the Trust from all possible losses or sources of
losses.

XRP held in the Trust’s
account with the XRP Custodian is the property of the Trust. 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