XRP Ledger Proposes Creating Wallets with Zero XRP Balance

XRP Ledger developers are testing a way to create accounts with a zero XRP balance. This will allow payment applications and automated software to operate without depositing cryptocurrency into each wallet.

The code proposal from October 15 introduces the SponsoredAccountCreate transaction: an existing account will be able to create a new one and cover its reserve requirements. Currently, XRP Ledger requires a minimum reserve of 1 XRP per account. These funds are locked as long as the account is active, preventing the network from being filled with empty wallets. A company creating 100,000 separate accounts would have to reserve 100,000 XRP just for these requirements.

Under the proposed system, the sponsor covers the reserve, and the new wallet can remain with a zero XRP balance. The overall reserve obligation remains, but the costs are borne by the sponsor, not the client. Through a broader sponsorship mechanism, sponsors will be able to cover transaction fees as well, allowing applications to pay for users.

Why this is needed

Ripple recently agreed with Privy, owned by Stripe, to implement embedded wallets in XRP Ledger applications. The integration is expected to support payments in XRP and the RLUSD stablecoin, including automatic payments by AI agents. Currently, such wallets need to be topped up with XRP for activation, even if they are intended only for stablecoins.

The new transaction relies on the Sponsored Fees and Reserves standard, which allows another account to pay network expenses without gaining control over the user's private keys. The code creates an account directly without sending XRP to it.

Status of the proposal

The code merge request remains open, with two unresolved automated review comments. The proposal also depends on changes in the sponsorship system, which have not yet been activated on the main network and require validator approval. According to the XRPL Dashboard, as of October 19, the sponsorship proposal received 11 out of 35 votes from trusted network validators, with 29 needed.