AI · CryptoSlate
A new XRPL upgrade could concentrate XRP ownership inside banks instead of retail wallets
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◌ Single Source
A proposed XRP Ledger (XRPL) upgrade could let banks and fintechs absorb XRP costs so customers never need to hold the token.
Key facts
- XRPL currently requires a base reserve of 1 XRP per account and 0.2 XRP per standard owner-reserve unit, though validators can change those parameters
- A business sponsoring 1,000 otherwise empty customer accounts would therefore carry roughly 1,000 XRP of additional base-reserve requirements alongside its own reserve, using current parameters
- The Sponsor amendment, based on the XLS-68 Sponsored Fees and Reserves proposal, would let a company pay account reserves and transaction fees for another XRPL user while that customer retains
- A firm serving 1 million users could theoretically carry about 1 million XRP of base-account reserve obligations under current requirements, before accounting for trust lines, token-related objects
Summary
01 XRPL’s proposed Sponsor amendment would let banks and fintechs pay customers’ XRP reserves and transaction fees while users retain account control. 02 The model simplifies onboarding but shifts reserve obligations, fee costs, and potentially substantial XRP holdings onto institutional sponsors. 03 Activation still requires validator support, while sponsors face uncertain exit rules and demand for XRP beyond their existing holdings. The Sponsor amendment, based on the XLS-68 Sponsored Fees and Reserves proposal, would let a company pay account reserves and transaction fees for another XRPL user while that customer retains control of their account and private keys.