India’s ARC Stablecoin Set for Potential Q1 2026 Launch
India’s Asset Reserve Certificate (ARC), a fully collateralized stablecoin developed by Ethereum infrastructure leader Polygon and Indian fintech firm Anq, could debut in the first quarter of 2026, sources told CoinDesk.
Each ARC token will reportedly maintain a 1:1 peg with the Indian rupee and will be minted only when issuers hold cash or cash equivalents such as fixed deposits, government securities, or cash balances. This approach is designed to ensure transparency, safety, and regulatory compliance, addressing challenges often seen with foreign-backed stablecoins or speculative digital tokens.
The ARC aims to curb liquidity outflows to dollar-backed stablecoins, keeping capital and innovation within India’s economy while supporting demand for public debt instruments.
Complementing the RBI’s Digital Currency
The ARC will operate within a two-tier framework alongside the Reserve Bank of India’s (RBI) Central Bank Digital Currency (CBDC). Under this structure, the RBI’s CBDC acts as the settlement layer, safeguarding monetary sovereignty, while private-sector platforms manage the regulated interaction layer, enabling compliant innovation in payments, programmable transactions, and remittance systems.
Only business accounts will be authorized to mint ARC tokens, ensuring alignment with the Liberalised Remittance Scheme (LRS). The ecosystem will use Uniswap v4 protocol hooks to limit token swaps to whitelisted addresses, reinforcing controlled access and regulatory adherence.
A Sovereign Stablecoin Amid Rising Global Risks
India’s push for a domestic stablecoin comes amid growing concerns over capital outflows from emerging markets into dollar-backed stablecoins. The U.S. GENIUS Stablecoin Act, which legalized dollar-backed stablecoins, has heightened risks of liquidity leaving emerging economies. Standard Chartered recently warned that emerging-market banks could see deposit outflows of up to $1 trillion over the next three years.
The ARC seeks to offer a regulated, rupee-backed alternative that complements the RBI’s CBDC, retains liquidity within India, and strengthens financial stability while fostering private-sector innovation.
