India is preparing to launch a rupee-pegged stablecoin.
Date: 2025-11-21 Author: Gabriel Deangelo Categories: CRYPTO PAYMENTS, IN WORLD
India plans to issue the Asset Reserve Certificate (ARC), a stablecoin backed by the rupee, slated for Q1 2026, CoinDesk reported, citing its sources. ARC is being developed jointly by Polygon Labs and fintech startup Anq, and information about the project first appeared in local media in early November 2025.
The key feature of ARC will be its full backing by fiat currency or its equivalent, including Indian government securities (G-Secs) and treasury bills. To issue the coin, the issuer must maintain the necessary reserves, which precludes speculative use of the asset. The coin will operate exclusively within the Indian financial system, preventing capital outflow into dollar-denominated stablecoins, CoinDesk sources specify.
Furthermore, ARC circulation will facilitate government borrowing, as the coin effectively acts as a proxy for G-Sec transactions. ARC will serve as an additional payment instrument alongside the central bank digital currency (CBDC). If the CBDC serves as the primary means of payment, ARC will enable faster and cheaper transactions.
The project envisions the integration of Uniswap v4 protocol hooks, which will allow settlements only between authorized accounts. This approach will ensure regulatory compliance and allow the central bank to maintain full control over the monetary system while simultaneously introducing innovation in the financial sector.
The exact date for the issuance of the digital rupee has not yet been specified, but the ARC launch is expected in the first quarter of 2026. This move demonstrates India's commitment to using stablecoins to strengthen the domestic economy and improve the efficiency of financial flows without the need for capital to flow abroad.
The introduction of ARC also opens up new opportunities for the development of digital payments and the integration of modern financial technologies, which could be an important step in modernising the Indian financial system and stimulating technological innovation in the public sector.
