- India’s ARC stablecoin, developed in partnership with Polygon and Anq, is scheduled to launch in early 2026.
- Tokens will be minted only for corporate accounts with full collateral backing.
- The stablecoin will interoperate with the RBI’s CBDC to preserve domestic liquidity and enable faster payments.
India’s Asset Reserve Certificate (ARC) stablecoin, a fully backed rupee stablecoin planned for launch in the first quarter of 2026, is being developed through a collaboration between Ethereum-scaling leader Polygon Labs and Bengaluru-based fintech firm Anq.
The stablecoin aims to modernize India’s payments infrastructure while keeping financial flows within the country and supporting demand for government debt.
ARC stablecoin and India’s central bank digital currency (CBDC)
The ARC stablecoin is designed to operate alongside India’s central bank digital currency (CBDC), providing a regulated private-sector layer while the RBI’s CBDC serves as the ultimate settlement instrument.
This two-tier framework allows ARC to enable faster, lower-cost payments and programmable transactions without undermining monetary sovereignty or regulatory oversight.
By combining blockchain-based innovation with India-focused fintech expertise, the project seeks to bridge the gap between legacy banking systems and decentralized technologies.
Fully collateralized and pegged 1:1 to the Indian rupee, ARC will only be minted when sufficient reserves are held in cash, government securities, or fixed deposits.
ARC issuers will be exclusively authorized for corporate accounts in accordance with Liberalised Remittance Scheme (LRS) rules and partial convertibility guidelines.
Transactions will also be restricted to whitelisted addresses via Uniswap v4 protocol hooks, ensuring the stablecoin remains secure, compliant, and fully traceable within India’s financial ecosystem.
Keeping liquidity at home
One of the principal drivers behind ARC is limiting capital outflows to dollar-backed stablecoins, which have gained traction in emerging markets following regulatory shifts in the United States.
Indian authorities have voiced concern that rising demand for global stablecoins such as USDT and USDC could siphon liquidity from domestic markets, potentially destabilizing local banks and reducing demand for government borrowing.
By anchoring ARC to the rupee and combining it with robust compliance mechanisms, India aims to retain financial innovation and liquidity within its borders while supporting demand for sovereign debt.
The stablecoin also targets operational inefficiencies in current payment systems. ARC transactions promise near-instant settlement, reduced reconciliation delays, and lower costs for businesses handling high transaction volumes.
If successful, ARC could build trust in rupee-denominated digital assets, offer a domestic alternative to global stablecoins, and strengthen India’s role in the broader digital economy.
Strategic timing and market implications
The timing of ARC’s launch is strategic: countries worldwide are exploring regulated stablecoins to accelerate cross-border payments and improve liquidity.
Leveraging Polygon’s Ethereum infrastructure together with Anq’s local expertise, India hopes to create a scalable, compliant platform that can integrate with existing systems such as UPI and Polygon CDK networks.
Local crypto community experts have praised the initiative as a potentially transformative step that could reduce capital flight during market stress and bolster the country’s digital financial ecosystem.
However, the success of the ARC stablecoin will depend on adoption by banks, fintech firms, and regulators, as well as its ability to complement the RBI’s CBDC.