India is moving toward the launch of the much awaited Asset Reserve Certificate (ARC) in 2026’s 1st quarter. Asset Reserve Certificate (ARC) is a stablecoin with a 1:1 peg to the Indian Rupee to increase the domestic liquidity within the country. As per the local reports, the Polygon and Anq, an Indian fintech platform, have developed ARC to deliver a sovereign and regulated alternative to dollar-pegged stablecoins. Additionally, ARC will work alongside the central bank digital currency (CBDC) of the Reserve Bank of India.

India Aims to Boost On-Shore Liquidity with Rupee-Pegged ‘ARC’ Stablecoin

With the plan to launch the rupee-pegged stablecoin, Asset Reserve Certificate (ARC), India intends to boost its domestic liquidity. The project, which is built by Indian Anq and Polygon, is expected to go live in 2026’s first quarter. While operating alongside the country’s CBDC project, ARC will be a significant replacement for dollar-pegged stablecoins. However, the authorities will permit only corporate accounts to mint exclusive ARC tokens. Additionally, only the whitelisted addresses will have the permission for token swaps via Uniswap v4 hooks.

Apart from that, ARC will have complete backing from rupee-denominated assets like fixed deposits, government securities, or cash. This guarantees the transparency and safety of stablecoins, decreasing the risk related to speculative behavior that foreign-backed tokens face. Additionally, with the rupee-pegged ARC, the regulators in India also expect to minimize liquidity outflow into the stablecoins backed by dollar. As a result, this move will offer a noteworthy support for the domestic economy. Moreover, the project will support RBI’s CBDC rather than competing with it, as the RBI will handle the settlement layer.

New Initiative Offers Replacement for Dollar-Pegged Stablecoins

According to the local reports, the ARC’s potential launch denotes India’s efforts to develop an independent stablecoin amid growing concerns about the capital outflows as dollar-backed stablecoins dominate. Thus, the country looks forward to keeping pace with the financial innovation while also protecting the economic sovereignty thereof with on-shore liquidity. Ultimately, ARC could serve as a cornerstone of the digital financial network of India as regulated and stable rupee-denominated payment tool.