India Set to Launch Rupee-Pegged ARC Digital Asset in 2026

India will launch the ARC, a rupee-pegged digital asset, in early 2026. Developed by Polygon and Anq, ARC aims to retain liquidity domestically, support public debt, and complement the RBI's CBDC within a regulated, two-tier framework.

India is preparing to launch the Asset Reserve Certificate (ARC), a fully collateralized, rupee-pegged digital asset, in the first quarter of 2026. Developed by Polygon and fintech firm Anq, ARC is designed to keep liquidity within India's financial system and reduce reliance on dollar-backed stablecoins. Each ARC token will be backed 1:1 by the Indian rupee, with reserves held in cash, government securities, or fixed deposits, ensuring transparency and regulatory compliance. The ARC will operate within a two-tier framework, complementing the Reserve Bank of India's Central Bank Digital Currency (CBDC), with the CBDC as the ultimate settlement layer and ARC providing programmable payment solutions. Only authorized business accounts will be able to mint ARC tokens, aligning with India's remittance and foreign exchange rules. ARC aims to enhance financial inclusion, reduce transaction costs, and foster demand for public debt, while leveraging blockchain technology for transparency and efficiency. The project will use Uniswap v4 protocol hooks to restrict token swaps to whitelisted addresses, ensuring controlled access and compliance. ARC's launch is expected to strengthen India's digital asset infrastructure and support domestic economic objectives.