New XRP Ledger Update Could Remove The Need To Hold XRP

A major upgrade to the XRP Ledger is set to launch next week, and it could change how users interact with the network. The xrpld 3.3.0 release includes five proposed changes, with the most notable being Sponsored Fees and Reserves. If approved by validators, this feature would allow banks or platforms to pay network costs on behalf of their users.

Currently, every new XRP Ledger account must lock up a specific amount of XRP to remain active, and every transaction requires a small fee in the native token. RippleX product head Jazzi Cooper identified these requirements as a primary barrier for new users and institutional adoption. By shifting the financial burden to platform sponsors, the update aims to make the ledger easier to use for those who do not want to manage the token directly.

Whether this will impact demand for XRP remains a point of debate. While individual retail users may no longer feel forced to buy the token to participate, large platforms bringing in thousands of accounts would still need to hold significant amounts of XRP to cover those reserves. The total amount of locked XRP would shift from many small holders to fewer institutional sponsors.

Validators must now decide whether to approve these changes. Each proposal requires 80 percent support for two consecutive weeks to go live. Some of these features have been proposed in the past but were pulled after developers identified security concerns, meaning the community will likely pay close attention to the technical implementation this time around.