XRP Ledger developers test sponsored wallet creation for stablecoin payments

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XRP Ledger sponsored wallet creation

Highlights

XRP Ledger developers are testing SponsoredAccountCreate, enabling existing accounts to create and fund new wallets, bypassing the current 1 XRP minimum reserve requirement for each new account.
As of Oct. 19, the sponsorship amendment needed for this feature had 11 out of 29 validator votes required for approval, with code still under review.
The proposed model could significantly reduce XRP reserves locked by companies creating thousands of accounts and facilitate stablecoin payments and AI-agent transaction sponsorship without jeopardizing users' private keys.

Proposed wallet model and approval status

As reported by CoinDesk, developers working on XRP Ledger are testing a transaction called SponsoredAccountCreate that would let an existing account create another account and fund its reserve requirement on the new wallet’s behalf.

The proposal, submitted on Oct. 15, would alter the current account-creation model on the network, which now requires each account to hold a minimum reserve of 1 XRP. That reserve stays locked for as long as the account remains active, a design intended to protect the blockchain from being flooded with empty wallets.

The code remains under review and still depends on a broader sponsorship amendment. As of Oct. 19, that amendment had secured 11 of the 29 validator votes required for approval.

Potential impact for payments and automated software

For companies building large-scale payment services, the change could materially reduce the amount of XRP tied up in account reserves. A business creating 100,000 separate accounts would otherwise need to set aside 100,000 XRP just to satisfy the network’s reserve requirement.

Under the proposed system, the network’s total reserve obligation would remain in place, but the cost would sit with the sponsoring account rather than the end customer. Developers also say the broader sponsorship mechanism could allow sponsors to cover transaction fees without taking control of users’ private keys, a feature that could support stablecoin payment flows and AI-agent software operating on XRP Ledger.

In our earlier article on AI agents’ adoption by large U.S. companies, we covered survey findings showing that many CEOs are seeing efficiency and growth benefits, even if only a small share consider the technology transformational so far. The piece also highlighted that AI rollouts are being paired with continued hiring, retraining, and sustained investment in AI infrastructure as firms prepare for broader human–AI collaboration.

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