India is preparing to launch the ARC stablecoin in the first quarter of 2026. This initiative is being spearheaded by Polygon and Anq, with the explicit goal of integrating within the country's burgeoning digital finance framework. The ARC stablecoin is intended to coexist and complement India's central bank digital currency (CBDC).
The forthcoming launch of ARC is considered a significant development for India's financial landscape. It aims to reduce the nation's reliance on dollar-backed stablecoins, which could potentially lead to an enhancement of rupee liquidity. Furthermore, it is expected to influence institutional asset demand within the Indian market.
The ARC stablecoin project, a collaboration between Polygon and Anq, is scheduled for release in Q1 2026. A primary objective of ARC is to decrease India's dependence on dollar-backed stablecoins. The project also seeks to achieve seamless integration with the Reserve Bank of India's (RBI) CBDC, thereby strengthening India's digital finance ecosystem.
Polygon, in partnership with Bengaluru-based Anq, is the driving force behind ARC, a stablecoin designed to be backed by the Indian rupee. The project, slated for a 2026 debut, intends to anchor its value domestically and operate within a newly established digital finance system.
Institutional Focus: ARC's Exclusive Stablecoin Target
ARC is specifically designed to cater to institutional users exclusively, deliberately excluding speculative retail participation. This strategic limitation is implemented to foster stability in onshore liquidity and to curb the outflow of funds into dollar-backed stablecoins.
The introduction of ARC could stimulate increased demand for rupee assets, potentially resulting in a reduction of government borrowing costs. Its planned integration with the CBDC represents an innovative regulatory strategy for India, aiming to strike a balance between maintaining control over liquidity and embracing technological advancements. Rajan Gupta, a Financial Analyst, commented, "ARC's unique backing with rupee-denominated assets could stabilize domestic liquidity and significantly impact government borrowing costs."
US Genius Stablecoin Act: ARC's Influential Blueprint
The operational model for ARC draws inspiration from the US Genius Stablecoin Act. This act promotes the development and use of domestic stablecoins, particularly in response to concerns about potential dollar outflows. In contrast to globally dominant stablecoins like USDT and USDC, ARC is positioned to serve a distinct market need.
Industry experts recognize ARC's significant potential role in redefining financial structures within emerging markets. While some observers have raised concerns regarding its centralized nature, there is also acknowledgment that India's measured, phased approach could serve as a valuable model for other nations. Sandeep Nailwal, Co-founder of Polygon, stated, "The launch of ARC represents a significant step toward anchoring value onshore and reducing dependency on dollar-denominated assets."