Coinsquare Capital Markets Ltd. (“Bitbuy”) is offering crypto contracts to purchase and sell XRP in reliance on a prospectus exemption granted by the Canadian Securities Administrators (CSA) in the amended and restated exemptive relief decision dated October 11, 2024. The statutory rights of action for damages and the right of rescission in section 130.1 of the Securities Act (Ontario) and similar legislation in the other CSA jurisdictions do not apply in respect of a misrepresentation in this statement to the extent that a crypto contract is distributed under the above-noted prospectus relief.

No securities regulatory authority in Canada or any other jurisdiction has expressed an opinion about any of the crypto assets (or crypto contracts) that are available through Coinsquare’s platform, including an opinion that the crypto assets are not themselves securities and/or derivatives.

Coinsquare has compiled the information contained in this Crypto Asset Statement to the best of its ability based on publicly available information.

Co-founded by Chris Larsen and Jed McCaleb, Ripple – the technology that XRP is a token of – was first released in 2012. As its most popular use case, XRP is a digital asset built for payments. It is the native digital asset on the XRP Ledger – an open-source, permissionless and decentralized blockchain technology that can settle transactions in 3-5 seconds. XRP can be sent directly without needing a central intermediary, making it a convenient instrument in bridging two different currencies quickly and efficiently.

As with all assets, investing in XRP is not without some general risks. Many of these risks are identified and explained in our Risk Statement. Many of these risks are identified and explained in our Risk Statement. In addition to the general risks, we outline some risks that are specific to XRP below. While we make an effort to identify every source of risk, we encourage you to do your own research and ensure you are comfortable investing in XRP.

In December 2020, the United States Securities and Exchange Commission (SEC) filed an action against Ripple Labs Inc. and two of its executives, alleging that they raised over $1.3 billion through an unregistered, ongoing digital asset securities offering.1 In July 2023, the U.S. District Court for the Southern District of New York ruled that XRP sold on digital asset exchanges (programmatic sales) did not constitute securities transactions, though institutional sales were found to be unregistered securities contracts.

In August 2024, the court issued a final judgment ordering Ripple to pay a civil penalty of approximately $125 million for the institutional sales violations and issued an injunction against future violations of securities laws. The litigation concluded in August 2025, with both the SEC and Ripple dropping their respective appeals. This resolution provides regulatory clarity that XRP is not classified as a security when traded on secondary markets. Coinsquare continues to monitor regulatory developments to ensure ongoing compliance.

In late 2021, the XRP network experienced issues when two nodes, maintained by Ripple Labs, were pushed out of sync with the rest of the network due to airdrop spam. The two affected nodes were revealed to be shouldering too much of the load of maintaining the XRP ledger. A few days after this initial issue, another bug had forced nodes verifying XRP’s full history to reboot, which caused about 20 minutes of downtime.4 It’s important for investors to be aware of historical issues when evaluating XRP.