Company: TOXR
Filing Date: 2025-08-22
Form Type: S-1/A
Source: 0001213900-25-079981
Chunk: 81

Company: 21Shares XRP ETF
Filing Date: 2025-08-22
Form: S-1/A
Chunk 81
---
 the Shares.

There is no guarantee that
any of the mechanisms in place or being explored for increasing the scale of settlement of XRP Ledger transactions will be effective,
or how long these mechanisms will take to become effective, which could adversely impact an investment in the Shares.

New competing digital assets may result in a reduction in demand for XRP, which could have a negative impact on the price of XRP and may have a negative impact on the performance of the Trust.

XRP faces significant competition
from other digital assets, as well as from other technologies or payment forms, such as SWIF, ACH, remittance networks, credit cards and
cash. There is no guarantee that XRP will become a dominant form of cross-border payments, store of value or method of exchange.

Competition from other consortia or private blockchains could have a negative impact on the price of XRP and adversely affect an investment in the Shares.

Many consortia and financial
institutions that are potential XRP users are researching and investing resources into private or permissioned blockchain platforms that
could compete with XRP to facilitate cross-currency transactions. These initiatives, such as Consensys’ Quorum, offer financial
payment networks and have partnered with many financial institutions. However, unlike the XRP Ledger, these platforms do not necessarily
require a native digital currency like XRP. In evaluating competing distributed ledger technologies, financial institutions may prefer
permissioned blockchains without digital currencies over the XRP Ledger and XRP in the future. If financial institutions choose to use
permissioned blockchains without digital currencies, the price of XRP may be negatively affected, which would adversely affect an investment
in the Shares.

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Competition from central bank digital currencies (“CBDCs”) could adversely affect the value of XRP and other digital assets.

Central banks have introduced
digital forms of legal tender. China’s CBDC project, known as Digital Currency Electronic Payment, has reportedly been tested in
a live pilot program conducted in multiple cities in China. A recent study published by the Bank for International Settlements estimated
that at least 36 central banks have published retail or wholesale CBDC work ranging from research to pilot projects. Whether or not they
incorporate blockchain or similar technology, CBDCs, as legal tender in the issuing jurisdiction, could have an advantage in competing
with, or replacing, XRP and other digital assets as a medium of exchange or store of value. Central banks and other governmental entities