India's Debt-Backed ARC Token Eyes Tentative Q1 2026 Debut, Sources Say

Why It Matters

The ARC provides India with a sovereign, regulated stablecoin that can preserve domestic liquidity, support monetary policy, and reduce exposure to foreign‑backed stablecoins, a growing risk for emerging‑market financial stability.

Summary

India’s Asset Reserve Certificate (ARC), a rupee‑backed stablecoin developed by Polygon and fintech firm Anq, is slated for a tentative launch in the first quarter of 2026. Each ARC token will be minted 1:1 against cash or cash equivalents such as government securities, ensuring full collateralisation and regulatory compliance. The token will operate in a two‑tier framework that complements the RBI’s central bank digital currency, with the CBDC serving as the ultimate settlement layer while private‑sector platforms handle programmable payments and remittances. By keeping liquidity within the domestic market, ARC aims to curb capital outflows to dollar‑stablecoins and bolster demand for Indian public‑debt instruments.