XRP Ledger upgrade proposal could allow banks to sponsor user fees

A proposed upgrade to the XRP Ledger (XRPL), known as the XLS-68 Sponsored Fees and Reserves proposal, could allow financial institutions and fintech companies to absorb transaction costs and account reserves on behalf of their users. This mechanism would enable customers to interact with tokenized assets and payments without needing to personally acquire or manage XRP.

Under the sponsorship model, a company would cover the required XRP for account reserves and transaction fees, effectively moving the capital requirement to the sponsor’s balance sheet while the user retains control of their private keys. Jazzi Cooper, Ripple’s head of product, noted that the feature is designed to keep underlying XRP mechanics hidden from the consumer experience.

The proposal is not yet ready for activation. Current data indicates only six validators support the amendment, which is below the required 29-validator threshold for implementation.