India's ARC token set to launch in Q1 2026, aims to bolster domestic economy

Key Takeaways

• India's ARC token, a fully collateralized stablecoin pegged 1:1 to the Indian rupee, is set to launch in Q1 2026 to retain liquidity within the domestic economy.
• The ARC ecosystem will use Polygon infrastructure and Uniswap v4 to ensure regulatory compliance and restrict access, complementing the RBI's digital currency.

India’s Asset Reserve Certificate (ARC), a digital asset backed 1:1 by the Indian rupee and developed by Polygon and Anq, is scheduled for release in Q1 2026, CoinDesk reported on Thursday, citing sources with knowledge of the plan.

The rupee-backed stablecoin aims to prevent liquidity outflows into dollar-backed stablecoins and support India’s domestic economy by fostering demand for public debt instruments.

Operating within a two-tier framework, ARC will complement the RBI’s Central Bank Digital Currency (CBDC), maintain monetary sovereignty, and enhance regulatory-compliant financial innovation.