CoinDesk
XRP Ledger developers are testing SponsoredAccountCreate, a proposed transaction that would let an existing account create a new wallet and cover its reserve. The new wallet could start with zero XRP, while the sponsor carries the reserve obligation. The proposal is designed for payment applications and automated software, including AI agents.
Why it matters
The XRP Ledger currently requires a minimum reserve of 1 XRP for each account. That XRP remains locked while the account is active, creating a funding hurdle for services that need many separate wallets. A company creating 100,000 accounts would need to set aside 100,000 XRP for reserves alone.
Sponsorship could let an application cover reserve requirements and, through the broader Sponsored Fees and Reserves mechanism, transaction fees as well. The sponsor would pay network costs without controlling users’ private keys. That could make it easier for customers to begin with stablecoins rather than first acquiring XRP to activate a wallet.
The proposal connects to Ripple’s partnership with Stripe-owned Privy to bring embedded wallets to XRP Ledger applications. The integration is intended to support XRP and Ripple’s RLUSD stablecoin payments, including automated payments by AI agents. Those wallets currently need XRP funding before activation, even when intended to hold stablecoins.
Market impact
The code proposal remains under review, with two unresolved automated code-review findings. It also depends on the broader sponsorship amendment being approved and activated on mainnet. As of Oct. 19, that amendment had 11 validator votes, short of the support needed for approval.
For XRP, the immediate significance is potential utility in account onboarding and payment infrastructure, not a confirmed change to how the network operates. The proposal would shift the reserve cost to sponsors rather than remove the network’s reserve requirement. Its practical effect depends on the code review and validator approval.
Frequently asked questions
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How would XRP Ledger wallets be created with zero XRP?
The proposed SponsoredAccountCreate transaction would let an existing account create a wallet and pay its reserve, so the new wallet could start with zero XRP.
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Why does the XRP Ledger require an account reserve?
The ledger requires a minimum reserve of 1 XRP for each account. The reserve remains locked while the account is active and helps prevent the network from being flooded with empty wallets.
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Who would pay the reserve for a sponsored XRP Ledger wallet?
The sponsoring account would carry the reserve cost instead of the customer. The network’s overall reserve obligation would remain.
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Could sponsors also cover XRP Ledger transaction fees?
Yes. The broader Sponsored Fees and Reserves mechanism could let applications pay transaction fees for users without controlling their private keys.
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What must happen before zero-XRP wallet creation is available?
The code proposal remains under review, and the broader sponsorship amendment still needs validator approval and mainnet activation.
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