XRP Ledger developers propose creating wallets with zero XRP for stablecoin payments

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.

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.

Those wallets currently need XRP funding before they can become active, even when they’re only meant to hold stablecoins.

The proposed account-creation transaction builds on the broader Sponsored Fees and Reserves standard, which allows another account to pay network costs without taking control of the user’s private keys. The new code would create an account directly without sending it any XRP.

The pull request remains open, with two unresolved automated code-review findings. It also depends on sponsorship changes that have yet to activate on mainnet.

Those changes still need validator approval. The sponsorship amendment had 11 of the 35 votes it needs from the network’s trusted validators as of Oct. 19, according to XRPL Dashboard, well short of the 29 required.