Last updated on January 3rd, 2026 at 01:53 pm
Quick Breakdown
- India to launch ARC, a rupee-pegged digital asset, in early 2026
- Fully collateralized by government securities, supporting corporate digital payments
- Aims to curb dollar stablecoin outflows and strengthen the rupee’s digital presence
India is set to introduce a regulated, rupee-pegged digital asset, the Asset Reserve Certificate (ARC), in early 2026. Developed by Polygon and fintech firm Anq, the ARC aims to provide a domestic alternative to U.S. dollar-backed stablecoins, supporting the nation’s digital payments ecosystem while preserving monetary sovereignty.
BREAKING: 🇮🇳 India’s rupee-backed ARC stablecoin is officially set to launch in Q1 2026. pic.twitter.com/8DPVbLFTfj
— Sapna Singh (@earnwithsapna) November 20, 2025
Domestic stablecoin to strengthen the rupee
The ARC is a debt-backed, 1:1 rupee-linked token fully collateralized by Indian government securities (G-Secs) and Treasury Bills. Policymakers hope it will curb liquidity outflows into dollar-denominated stablecoins, which have increasingly threatened the rupee’s stability and complicated monetary policy. The initiative will operate alongside the Reserve Bank of India’s (RBI) Central Bank Digital Currency (CBDC), forming a dual-layer framework for digital finance.
Only corporate accounts will be allowed to mint new ARC tokens, ensuring compliance with India’s foreign exchange regulations and limiting consumer-level speculative activity. The token will support programmable payments, automated transactions, cross-border remittances, and digital financial services, making it a key instrument for businesses and fintech platforms.
Integration with India’s digital policy
The ARC project aligns with India’s broader push for a digitized, regulated financial infrastructure. By providing a government-backed stablecoin alternative, the initiative increases demand for local government debt, strengthens the rupee’s digital presence, and enables secure, compliant digital transactions nationwide.
Sources familiar with the project indicate that the ARC will be a foundational component of India’s digital asset ecosystem, complementing the RBI CBDC. If launched as planned in Q1 2026, it could reshape how Indian businesses and institutions engage with blockchain-powered payments, while offering a regulatory-compliant vehicle for domestic liquidity and fintech innovation.
Notably, India’s Enforcement Directorate (ED) recently raided 11 locations across several cities, including Delhi, as part of an investigation into a $29 million global crypto fraud scheme. The raids were conducted under the Prevention of Money Laundering Act (PMLA), following FIRs filed by the CBI and Delhi Police.
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