TLDR
- A new transaction type called SponsoredAccountCreate would enable XRP Ledger wallets to launch with zero balance.
- Sponsoring entities would bear reserve costs while wallet holders maintain full ownership and control.
- Ripple formed a partnership with Privy to integrate embedded wallets supporting XRP, RLUSD, and agent-driven payments.
- On October 28, the Sponsor amendment secured 10 validator votes from a pool of 35, falling short of the 29 required for two-week activation.
The XRP Ledger development community has introduced a mechanism that would allow account creation without requiring XRP deposits in individual wallets. This innovation would enable payment platforms to establish accounts while a separate entity assumes responsibility for the network’s mandatory reserve.
Introducing a Novel Account Creation Method
A technical proposal submitted on October 15 introduces SponsoredAccountCreate as a new transaction type. This feature would permit established accounts to generate wallets starting with zero XRP while covering the reserve obligation on their behalf.
Source: Github
Current protocol rules mandate that newly created accounts maintain a minimum balance of 1 XRP. Even existing sponsorship frameworks require a small XRP payment during the account opening process. This reserve serves as a mechanism to prevent the proliferation of dormant accounts and remains locked throughout the account’s active lifespan.
Organizations deploying 100,000 wallets currently face a requirement of 100,000 XRP to satisfy base reserve rules. The proposed system would shift this obligation to the sponsoring account rather than distributing it across individual wallets.
In related developments, data from October 23 indicated that stablecoin volume on the XRP Ledger declined by 13.19% over seven days, reaching approximately $999.9 million. RLUSD represented the dominant token on the platform during this period.
The broader Sponsored Fees and Reserves framework would extend beyond reserves to include transaction fee coverage. Users would retain exclusive control over their private keys, while the network would track reserve obligations separately.
Payment Infrastructure Integrates Wallet Technology
Ripple’s collaboration with Privy, acquired by Stripe, focuses on embedding wallet functionality within payment applications. This integration would enable developers to incorporate support for XRP, the RLUSD stablecoin, and autonomous payments executed by software agents.
In parallel developments, Ripple and Robinhood broadened their RLUSD offerings on October 27. The arrangement encompasses institutional settlement capabilities through Bitstamp and includes plans to integrate RLUSD into Robinhood’s primary application before year-end.
The account-creation implementation remains under review as an open proposal. Automated analysis flagged two outstanding issues related to account validation procedures and transaction cleanup protocols. Implementation also depends on sponsorship mechanisms that await activation on the production network.
Recent ecosystem activity features BNY’s extension of custody services for XRP and RLUSD, revealed on October 27. The financial institution now provides support for both digital assets to qualified institutional customers, with Ripple and BNY exploring trade finance applications on the ledger. As of October 28, the Sponsor amendment garnered 10 affirmative votes from 35 trusted validators, down from 11 on October 19. Activation requires sustained support from 29 validators over a consecutive two-week period.
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