How Does Ripple Use XRP? Custody ‘Gas Station’ Tool Sends XRP Automatically To Cover Fees

Institutions that hold stablecoins or tokenized assets on the $XRP Ledger face a small but real problem: every transaction needs a little $XRP to pay the fee. Ripple Custody’s documentation describes a tool built to remove that problem, and it treats $XRP as the fuel for those accounts.

What the tool does

The feature is called Gas Station. According to the documentation, Gas Station pays transaction fees for “sponsored” accounts. A firm funds one sponsor account with the network’s native token. When a client account needs to transact but has no native token, the sponsor account sends it the required amount.