According to sources, India’s Asset Reserve Certificate (ARC), a fully collateralised stable digital asset created by India-based fintech company Anq and Ethereum scaling and infrastructure development behemoth Polygon, may launch in the first quarter of 2026.
Backed by the rupee
Each ARC token will trade 1:1 with the Indian rupee, according to sources, and will only be issued when issuers obtain cash or currency equivalents like cash balances, government securities, or fixed deposits.
This configuration addresses issues frequently seen in foreign-backed stablecoins or speculative tokens by guaranteeing transparency, security, and compliance.
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In essence, ARC is intended to retain liquidity and innovation within India’s local economy while simultaneously stimulating demand for public debt instruments by preventing cash drain into dollar-backed stablecoins.
By acting as a regulated interaction layer created by the private sector, the proposed digital token will supplement the Reserve Bank of India’s (RBI) Central Bank Digital Currency (CBDC).
The need behind this
The RBI’s Central Bank Digital Currency (CBDC) continues to be the last settlement layer in this two-tier system, protecting monetary security and sovereignty.
Simultaneously, the private sector runs the platform that encourages responsible innovation in remittance systems, programmable transactions, and payment solutions in a setting that complies with regulations.
Within the confines of India’s financial and regulatory framework, this structure guarantees robust control over the monetary base by upholding central monitoring.
According to sources, the ARC will be in line with the partial convertibility of the rupee, which is limited for capital account transactions to preserve economic stability but completely convertible for current account activities, including commerce, company payments, and remittances.
Stable token for business
By enabling payments for commercial transactions without needing complete convertibility, the stable digital token makes the process easier.
Crucially, only corporate accounts will be permitted to manufacture ARC tokens, guaranteeing adherence to the regulations controlling individual foreign exchange transactions under the Liberalised Remittance Scheme (LRS).
In order to further strengthen controlled access and regulatory compliance, ARC’s ecosystem will employ Uniswap v4 protocol hooks to limit token swaps to whitelisted addresses only.
India and crypto
Following the Trump administration’s pro-crypto legislative actions, India is pursuing a sovereign stablecoin despite growing worries about capital outflows from emerging nations into dollar-backed stablecoins.
Additionally, during a Mumbai event, Chief General Manager Suvendu Pati of the Reserve Bank of India announced the launch of a deposit tokenisation trial. The basic layer of the test will be the wholesale portion of the RBI’s central bank digital currency.
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