India is reportedly gearing up to introduce its first rupee-pegged national stablecoin — the Asset Reserve Certificate (ARC) — with a market launch expected in Q1 2026, according to sources cited by CoinDesk.
The first details surfaced in early November 2025 in Indian media, revealing that Polygon Labs and fintech startup Anq are leading the development of the project.
A Fully Regulated Stablecoin Under RBI Oversight
ARC is designed as a fully compliant, non-speculative digital asset regulated by India’s central bank.
It will be pegged to the Indian rupee and fully backed by fiat reserves or their equivalents, including:
- Indian government securities (G-Secs)
- Treasury bills
- Other high-quality liquid assets
Issuers will be required to maintain sufficient reserves at all times, ensuring transparency and strict regulatory alignment.
According to sources, ARC will circulate exclusively within India’s financial perimeter and aims to prevent capital outflows into USD-denominated stablecoins. Officials also believe the instrument will make it easier for the government to raise funds, effectively acting as a proxy to G-Secs.
Complementing India’s CBDC, Not Replacing It
ARC is positioned as an additional payment layer, operating alongside India’s upcoming CBDC (digital rupee).
The CBDC will remain the primary settlement tool, while ARC is expected to provide faster and cheaper transactions.
This structure allows the central bank to maintain full monetary control, while still enabling innovation in digital finance.
Uniswap v4 Hooks for Controlled Interoperability
One notable technical feature: the ARC system will use Uniswap v4 protocol hooks, ensuring that digital asset transfers happen exclusively between authorized and verified accounts.
This design keeps ARC tightly integrated within the regulated financial system.
Launch Timeline Remains on Track
The ARC stablecoin rollout is expected in Q1 2026, though the exact timing of the digital rupee’s full-scale issuance by the central bank is still unknown.
