The Sponsor amendment for the XRP Ledger would let banks and fintechs cover XRP reserves and transaction fees for their customers, who would retain account control and private keys. This shift could make institutional sponsors the primary XRP holders rather than retail users. The amendment still requires 29 validators to activate, with only six currently supporting it. A bank serving 1 million customers could theoretically carry roughly 1 million XRP in base-reserve obligations under current parameters. Proposed exit mechanisms such as sponsorship transfer or account deletion introduce complexities for both sponsors and users.
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