XRP Ledger code would allow wallets with zero XRP

Developers on the XRP Ledger are testing a way to open accounts that hold no XRP at all, so payment apps and automated software could hand users a stablecoin wallet without first funding it with the network's token. The change, a new transaction type called SponsoredAccountCreate, was submitted as a code proposal on Oct. 15, CoinDesk reported.

The problem it solves

Every XRP Ledger account must keep a minimum reserve of 1 XRP, locked for as long as the account exists. The rule stops people flooding the ledger with empty accounts, but it adds up for businesses: a company opening 100,000 customer wallets has to set aside 100,000 XRP. That is awkward for apps that only want users to hold dollar stablecoins such as Ripple's RLUSD.

What would change

• An existing sponsor account creates the new account and covers its reserve, so the new wallet can start with a zero XRP balance.
• The network's total reserve requirement doesn't shrink; the cost simply moves from the user to the sponsor.
• Under the wider Sponsored Fees and Reserves standard, sponsors could also pay transaction fees for their users.
• Sponsors pay the costs but never get control of the user's private keys.

The use case is close at hand. Ripple recently teamed up with Stripe-owned Privy to bring embedded wallets to XRP Ledger apps for payments in XRP and RLUSD, including payments made by AI agents. Those wallets currently need XRP before they become active, even if they will only ever hold stablecoins.

Still a long way off

The pull request is open, with two unresolved findings from automated code review, and it relies on sponsorship changes that are not active on mainnet yet. Those need validator approval: the sponsorship amendment had 11 votes from trusted validators as of Oct. 19, according to XRPL Dashboard, against the 29 required. Amendment votes can take time, as the delayed XRP Ledger bug fix showed this month. For how reserves, fees and the token fit together, see our guide what is XRP.