XRP Ledger developers propose wallets that hold zero XRP for stablecoin payments
Proposal would let sponsors cover XRP Ledger account reserves
Developers working on the XRP Ledger have submitted a change that would allow new accounts to open with zero XRP in them. The idea is aimed at payment apps and automated software that need many wallets but do not want every user to buy XRP first.
Under the current rules, each account must hold a minimum reserve of 1 XRP. That amount stays locked while the account is active, which keeps the network from filling up with empty wallets. A company creating 100,000 accounts would need to set aside 100,000 XRP just for reserves.
A sponsoring account could instead cover the reserve on behalf of a new wallet. The network's total reserve requirement would stay the same; only the cost would move from the customer to the sponsor.
How the proposed change would work
The proposal, submitted to the XRP Ledger development repository on Oct. 15, introduces a new transaction called SponsoredAccountCreate. It would let an existing account create another account and pay its reserve in one step.
It builds on a wider sponsorship standard that allows one account to pay another's network fees without taking control of the user's private keys. A wallet created this way would receive no XRP yet still be able to operate.
Why payment apps might want it
Many wallets built for payment applications and AI agents currently need XRP funding before they can become active, even if they are only meant to hold stablecoins. A stablecoin is a digital currency whose value is tied to something like the U.S. dollar, used for fast online payments.
Ripple recently partnered with Stripe-owned Privy to bring embedded wallets to XRP Ledger applications. That work is intended to support payments in XRP and Ripple's RLUSD stablecoin, including automated payments made by AI agents.
If sponsors cover reserves, the cost of those accounts would no longer fall on every user. Sponsors could also cover transaction fees through the broader sponsorship mechanism, so applications can pay charges on behalf of their users.
Where the proposal stands now
The pull request remains open and still has two unresolved automated code-review findings. It also depends on sponsorship changes that have not yet activated on the main network.
Those sponsorship changes need approval from the network's validators. As of Oct. 19, the sponsorship amendment had received 11 of the 29 validator votes required for approval.
What is still unclear
It is not yet confirmed that this feature will be approved or adopted. The proposal is still under review, and the broader sponsorship changes it depends on have not reached the required validator support. It is also not stated whether individual wallet providers would choose to sponsor reserves for users.
Because the feature would let users transact without holding any XRP, some users might rely on sponsors to pay for their account costs and fees. How that would be set up in practice has not been detailed.
- XRP Ledger developers have proposed a new SponsoredAccountCreate transaction that lets a sponsor cover an account's reserve, allowing wallets with zero XRP.
- The current rule locks a 1 XRP reserve for each account; a company creating 100,000 accounts would need to set aside 100,000 XRP under the existing rules.
- Sponsors could also pay users' transaction fees through a broader sponsorship mechanism, without controlling users' private keys.
- The change depends on sponsorship updates that had 11 of 29 required validator votes as of Oct. 19 and have not activated on the main network.
Where to follow it
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