India’s ARC Stablecoin Could Launch in Early 2026
India’s Asset Reserve Certificate (ARC), a fully collateralized stablecoin developed by Ethereum infrastructure leader Polygon and Indian fintech Anq, is reportedly targeting a launch in the first quarter of 2026, sources told CoinDesk.
Each ARC token will be pegged 1:1 to the Indian rupee and minted only when issuers hold cash or cash equivalents, including fixed deposits, government securities, or cash balances. This approach aims to ensure transparency, safety, and regulatory compliance, mitigating risks often associated with foreign-backed stablecoins or speculative digital tokens.
The ARC is designed to prevent capital outflows to dollar-backed stablecoins, keeping liquidity and innovation within India while supporting demand for public debt instruments.
Complementing the RBI’s Digital Currency
The ARC will operate alongside the Reserve Bank of India’s (RBI) Central Bank Digital Currency (CBDC) within a two-tier framework. The RBI’s CBDC will act as the settlement layer, safeguarding monetary sovereignty, while private-sector platforms manage the interaction layer, enabling regulated innovation in payments, programmable transactions, and remittance systems.
Only business accounts will be authorized to mint ARC tokens, ensuring compliance with the Liberalised Remittance Scheme (LRS). Token swaps will be restricted to whitelisted addresses via Uniswap v4 protocol hooks, reinforcing regulatory adherence.
A Sovereign Stablecoin Amid Global Dollar Risks
India’s push for a domestic stablecoin comes amid concerns over capital leaving emerging markets for dollar-backed stablecoins. The U.S. GENIUS Stablecoin Act, which legalized dollar-backed stablecoins, has increased liquidity risks, with Standard Chartered warning that emerging-market banks could face deposit outflows of up to $1 trillion over the next three years.
The ARC aims to provide a regulated, rupee-backed alternative that complements the RBI’s CBDC, retains liquidity within India, and strengthens financial stability while fostering private-sector innovation.
