India's Debt-Backed ARC Token Eyes Tentative Q1 2026 Debut, Sources Say

Markets Share Share this article Copy link X icon X (Twitter) LinkedIn Facebook Email India's Debt-Backed ARC Token Eyes Tentative Q1 2026 Debut, Sources Say The ARC will operate within a two-tier framework, complementing the RBI's Central Bank Digital Currency. By Omkar Godbole | Edited by Sam Reynolds Nov 20, 2025, 6:23 a.m. Indian flag (Naveed Ahmed/Unsplash) What to know : India's Asset Reserve Certificate (ARC) is a stable digital asset set to launch in the first quarter of 2026, backed 1:1 by the Indian rupee. ARC aims to prevent liquidity outflow into dollar-backed stablecoins, supporting India's domestic economy and public debt demand. The ARC will operate within a two-tier framework, complementing the RBI's Central Bank Digital Currency. India's Asset Reserve Certificate (ARC), a fully collateralized stable digital asset developed by Ethereum scaling and infrastructure development giant Polygon and India-based fintech firm Anq, could go live in the first quarter of 2026, sources familiar with the matter told CoinDesk. Sources said that each ARC token will trade 1:1 with the Indian rupee and will be minted only when issuers acquire cash or cash equivalents such as fixed deposits, government securities, or cash balances. This setup ensures transparency, safety, and compliance, addressing shortcomings often seen in foreign-backed stablecoins or speculative tokens. STORY CONTINUES BELOW Don't miss another story. Subscribe to the Crypto Daybook Americas Newsletter today . See all newsletters Sign me up By signing up, you will receive emails about CoinDesk products and you agree to our terms of use and privacy policy . Essentially, ARC is designed to prevent liquidity outflow into dollar-backed stablecoins, keeping liquidity and innovation within India’s domestic economy while simultaneously fostering demand for public debt instruments. The proposed digital token will complement the Reserve Bank of India's (RBI) Central Bank Digital Currency (CBDC) by serving as a regulated interaction layer developed by the private sector. In this two-tier framework, the RBI’s Central Bank Digital Currency remains the ultimate settlement layer, safeguarding monetary sovereignty and security. At the same time, the private sector operates the platform that fosters responsible innovation in payment solutions, programmable transactions, and remittance systems within a regulatory-compliant environment. This framework ensures strong control over the monetary base by maintaining central oversight, all within the boundaries of India’s financial and regulatory system. Sources said that the ARC will align with rupee partial convertibility: the INR is fully convertible for current account transactions such as trade, business payments, and remittances, but remains restricted for capital account transactions to protect economic stability. The stable digital token will do so by allowing payments for business transactions without requiring full convertibility. Importantly, only business accounts will be authorised to mint ARC tokens, ensuring compliance with the Liberalised Remittance Scheme (LRS) rules governing individual foreign exchange transactions. Additionally, ARC’s ecosystem will use Uniswap v4 protocol hooks to restrict token swaps exclusively to whitelisted addresses, reinforcing controlled access and regulatory adherence. India’s pursuit of a sovereign stablecoin comes amid rising concerns over capital outflows from emerging markets into dollar-backed stablecoins, following the Trump administration’s pro-crypto regulatory measures. Notably, the landmark GENIUS Stablecoin Act legalized dollar-backed stablecoins, raising alarms about significant liquidity shifts away from emerging economies. Standard Chartered recently warned that emerging market banks could face deposit outflows of up to $1 trillion over the next three years as savers increasingly turn to dollar-backed stablecoins. India Polygon Blockchain Stablecoin More For You Protocol Research: GoPlus Security By CoinDesk Research Nov 14, 2025 Commissioned by GoPlus What to know : As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M. GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month. Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B. View Full Report More For You Dogecoin Hits Multi-Month Lows as Exchange Flows Turn Bullish for First Time in 6 Months By Shaurya Malwa , CD Analytics 16 minutes ago What to know : Dogecoin's price fell from $0.160 to $0.149, breaking the critical support level at $0.155. Whale accumulation and positive exchange net inflows suggest potential for a market bottom despite ongoing price declines. Traders should watch for a DOGE ETF decision and price movements around $0.155 and $0.150 as key indicators. 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