XRP Ledger developers propose creating wallets with zero XRP for stablecoin payments
- XRP Ledger developers are testing a transaction that would let sponsors cover account reserves, allowing new wallets to hold zero XRP.
- The proposal could reduce costs for payment applications and automated software by enabling sponsors to pay users’ reserve requirements and transaction fees without controlling their private keys.
- The code remains under review and depends on a broader sponsorship amendment that had secured only 11 of the 29 validator votes required for approval as of Oct. 19.
Developers working on the XRP Ledger are testing a way to create blockchain accounts with zero XRP in them, potentially allowing payment applications and automated software to operate without first depositing the cryptocurrency into every wallet.
A code proposal submitted Oct. 15 introduces a transaction called SponsoredAccountCreate, which would allow an existing account to create another account and cover its reserve requirement.
XRP Ledger currently requires a minimum reserve of 1 XRP for each account. That money remains locked while the account is active, preventing the network from being flooded with empty wallets.
A company creating 100,000 separate accounts would need to set aside 100,000 XRP just to meet those reserve requirements.
Under the proposed system, a sponsoring account would cover the reserve, allowing the new wallet to keep a zero XRP balance. The network’s overall reserve obligation would remain, with the sponsor carrying the cost instead of the customer.
Sponsors could also cover transaction fees through a broader sponsorship mechanism, allowing applications to pay those charges on behalf of their users.
How this system could be useful
Ripple recently partnered with Stripe-owned Privy to bring embedded wallets to XRP Ledger applications. The integration is intended to support payments using XRP and Ripple’s RLUSD stablecoin, including automated payments made by AI agents.