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

India's Asset Reserve Certificate (ARC), a fully collateralized stable digital asset developed by Polygon and Anq, is tentatively slated to launch in the first quarter of 2026. Each ARC token will trade 1:1 with the Indian rupee and will only be minted when issuers acquire cash or cash equivalents like government securities or fixed deposits, ensuring transparency and compliance. The ARC is designed to prevent liquidity outflow into dollar-backed stablecoins, keeping capital within India's domestic economy while promoting demand for public debt instruments. It will operate as a regulated private-sector layer complementing the RBI's Central Bank Digital Currency (CBDC), which remains the ultimate settlement layer. The ARC will adhere to rupee partial convertibility, allowing business payments without full convertibility, and only business accounts can mint tokens. Furthermore, the ecosystem will use Uniswap v4 protocol hooks to restrict token swaps to whitelisted addresses, aligning with regulatory oversight amid concerns about capital flight to dollar-backed stablecoins.

(Source：CoinDesk)