Key Takeaways
A proposed XRPL upgrade would let banks and fintechs cover customer XRP costs, shifting reserve and fee obligations to institutional balance sheets.
According to CryptoSlate, a proposed XRP Ledger upgrade called the Sponsor amendment could allow banks and fintechs to absorb XRP costs so customers never need to hold the token. Based on the XLS-68 Sponsored Fees and Reserves proposal, the change would let a company pay account reserves and transaction fees for another user while that customer retains account and private key control.
Jazzi Cooper, Ripple’s head of product, stated the feature removes friction by letting institutions cover costs on behalf of users. However, account reserves would still need to be covered in XRP, and transaction fees would continue to be paid in the token and destroyed. Businesses could thus become the XRP holders supporting customers who own none.
As of press time, XRPScan data showed only six validators supporting the amendment, short of the 29-validator threshold, with no activation date scheduled. Ctrl Alt has also worked on the proposal alongside Ripple and XRPL developers. Sponsors would face uncertain exit rules, customer churn management, and questions regarding whether deployment would require purchasing fresh XRP or recycling existing holdings.
Source & Fact-Check Note
This report is synthesized from coverage by CryptoSlate. Information has been fact-checked and structured for market clarity by CoinQuickly’s research desk.
Read original article at CryptoSlate ↗
