Developers on the XRP Ledger are testing a new account-creation transaction that could allow companies to open customer and software-controlled wallets without placing XRP in them first.
The proposal, called SponsoredAccountCreate, would let an existing account create a new blockchain account while paying the reserve requirement attached to it. The new wallet could then begin with a zero XRP balance and potentially hold stablecoins such as Ripple’s RLUSD.
The idea is aimed at payment applications, embedded wallets and automated software, including AI agents. Under the current XRP Ledger design, every account must maintain a minimum reserve of 1 XRP. That reserve remains locked while the account exists, helping prevent the network from filling with unused accounts.
For businesses creating wallets at scale, the requirement can become a significant operational cost. An application opening 100,000 accounts would need to set aside 100,000 XRP to satisfy the reserve requirement, even if those wallets were intended mainly for stablecoin payments.
How sponsored accounts would work
The proposed transaction would shift responsibility for the reserve from the customer to a sponsoring account. The sponsor would carry the XRP obligation, while the newly created wallet would not need to receive XRP merely to become active.
A related sponsorship framework could also allow applications to pay transaction fees for users. This would make it possible for a company to cover network costs without gaining control of a customer’s private keys, which are the credentials used to authorize transactions.
That distinction is important for embedded wallets. In such systems, a service can present a wallet inside an application rather than requiring each user to manage a separate crypto platform. The proposed XRP Ledger changes are intended to reduce the need for users to acquire XRP before they can use a wallet designed for stablecoin payments.
The new code is part of the broader Sponsored Fees and Reserves standard. However, it has not yet been activated on the XRP Ledger’s main network. The code proposal was submitted on Oct. 15 and remains under review, with two automated code-review findings still unresolved.
Relevance for payment apps and AI agents
The proposal comes as Ripple has partnered with Privy, a company owned by Stripe, to bring embedded wallets to XRP Ledger applications. The integration is intended to support payments in XRP and Ripple’s RLUSD stablecoin, including automated payments made by AI agents.
At present, those wallets need XRP funding before they can become active, even when their intended function is to hold or transfer stablecoins. Sponsored account creation could remove that initial funding step for users, while leaving the reserve obligation with the application or another designated sponsor.
The change would not eliminate the XRP Ledger’s reserve requirement. Instead, it would determine who carries it. The network would still require the reserve for each active account, but the customer would not necessarily need to provide the XRP personally.
For companies operating large numbers of wallets, that could simplify onboarding and reduce the friction involved in launching payment services. The proposal is still experimental, however, and its use depends on the underlying sponsorship amendment receiving sufficient validator support.
Approval remains outstanding
The sponsorship changes require approval from the XRP Ledger’s trusted validators before they can become active on mainnet. According to CoinDesk, the amendment had received 11 validator votes as of Oct. 19. The source material states that 29 approvals are required and also reports the vote as 11 of 35, reflecting the number of validators considered in the process.
Until the amendment is approved and the code review is completed, companies cannot rely on the proposed mechanism for live wallet creation. The transaction therefore represents a possible change to how XRP Ledger applications handle onboarding and network costs, rather than an available feature.
Moneyiar market picture
Moneyiar data recorded on Oct. 25 showed XRP at $1.2991099051, up 0.56% over 24 hours and 0.09% over seven days. The asset listed as STABLE was priced at $0.0265498473, down 2.51% in 24 hours but up 10.84% over seven days.
Compound (COMP) stood at $21.1287447338, down 10.42% over 24 hours and up 0.3% over seven days. edgeX (EDGE) was at $0.3244313833, with a 24-hour gain of 0.81% and a seven-day increase of 13.63%. These figures are Moneyiar market data, recorded at the stated times on Oct. 25, 2026.
