India’s ARC Stablecoin Could Launch in Early 2026, Sources Say
India’s Asset Reserve Certificate (ARC), a fully collateralized stablecoin developed by Ethereum infrastructure firm Polygon and Indian fintech Anq, is reportedly targeting a potential launch in the first quarter of 2026, sources told CoinDesk.
Each ARC token is expected to maintain a 1:1 peg with the Indian rupee and will be minted only when issuers acquire cash or cash equivalents such as fixed deposits, government securities, or cash balances. This structure ensures transparency, regulatory compliance, and safeguards against risks commonly associated with foreign-backed stablecoins or speculative digital assets.
The ARC aims to prevent liquidity outflows to dollar-backed stablecoins, keeping capital and innovation within India’s domestic economy while promoting demand for public debt instruments.
Integration with 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. In this system, the RBI’s CBDC serves as the settlement layer, protecting monetary sovereignty, while private-sector platforms manage the interaction layer. This setup allows for compliant innovation in payments, programmable transactions, and remittances.
Only business accounts will be authorized to mint ARC tokens, ensuring alignment with the Liberalised Remittance Scheme (LRS). Exchange activity will be restricted using Uniswap v4 protocol hooks to allow swaps only for whitelisted addresses, maintaining regulatory oversight.
A Sovereign Solution Amid Global Dollar Outflows
India’s push for a domestic stablecoin comes amid concerns over capital leaving emerging markets for dollar-backed alternatives. The U.S. GENIUS Stablecoin Act, which legalized dollar-backed stablecoins, has heightened the risk of liquidity outflows. Standard Chartered has warned that emerging-market banks could face deposit outflows of up to $1 trillion over the next three years.
The ARC seeks to provide a rupee-backed, regulated alternative, keeping liquidity within India’s economy while complementing the RBI’s CBDC and supporting the country’s financial stability.
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