The XRP Ledger is set for a major upgrade that would let banks, issuers, and platforms cover network costs for their users — removing the need for everyday people to hold XRP just to use the ledger. The proposed changes are part of xrpld version 3.3.0, which Jazzi Cooper, head of product at RippleX, said should arrive next week.
How the Sponsored Fees Proposal Works
Currently, every XRPL account must lock up 1 XRP as a reserve, plus 0.2 XRP for each extra item such as a trustline. Transactions also burn a small fee. That means new users have to buy XRP before they can do anything on the ledger — a hurdle Cooper called a barrier for both individuals and institutions looking to tokenize assets.
The upgrade includes a feature called Sponsored Fees and Reserves. Under the proposal, a bank, issuer, or platform can choose to pay the locked reserve and transaction fees on behalf of its users. Users still control their own accounts and private keys; the sponsor just covers the costs. The locked XRP doesn't vanish — the sponsor holds it instead of millions of small users.
Why the Change Matters
If the upgrade passes, everyday users lose their main reason to buy XRP. But platforms that sign up thousands of accounts would need far more XRP to cover those reserves. That could shift demand from retail buyers to institutional players.
Cooper described the current requirement as a barrier for new users and for institutional tokenization on XRPL. Making XRP ownership optional for end users could open the door for more mainstream adoption, especially in areas like tokenized real-world assets.
Past Upgrades and Market Impact
This isn't the first time the XRPL has been updated. Earlier this year, Permissioned Domains went live in February, and a smaller upgrade followed in May. Neither moved the price much — ledger use grew while XRP fell. XRP currently trades near $1.06, down 1.3% on the day and about 64% lower than a year ago. Its market cap stands at $66.5 billion.
Two of the five changes in the current proposal have failed before. Batch was pulled in February after a flaw was discovered, and Permission Delegation was switched off in September 2025 due to a fee-checking issue. The Sponsored Fees and Reserves proposal is new to this vote.
The Path to Activation
For each of the five proposed changes to become active, validators must reach 80% support for two straight weeks. Batch has already been rejected once, so its chances may be slimmer. The other four — including Sponsored Fees and Reserves — will need to clear that same high bar.
