India plans to introduce a rupee-backed ARC stablecoin by 2026.

crypthub

3 days ago

Asset Reserve Certificate Overview

India will launch the Asset Reserve Certificate (ARC), a rupee‑pegged stablecoin, in early 2026. Polygon Labs and fintech startup Anq are developing the token. ARC will be fully backed by fiat reserves, Indian government securities and treasury bills. Issuers must hold sufficient reserves before minting new tokens. The design emphasizes non‑speculative use and full regulatory compliance.

Domestic Focus and Economic Goals

ARC will circulate only within India’s financial system to curb capital flight toward dollar‑stablecoins. By tying the token to G‑Sec yields, it may simplify government borrowing. It will act as an additional payment layer alongside the upcoming central bank digital currency (CBDC). While the digital rupee remains the primary medium, ARC aims to enable cheaper, faster settlements. Regulatory controls will limit transactions to authorized accounts.

Timeline, Oversight and Technology

The stablecoin is slated for a Q1‑2026 debut, though the RBI has not set a CBDC issuance date. A two‑layer model of CBDC plus ARC is intended to modernize payments while preserving capital safeguards. The RBI will retain full oversight of the monetary ecosystem. ARC’s blockchain operations will use Uniswap v4 hooks to enforce account authorizations. This approach balances innovation with strict compliance.