India's ARC Stablecoin to Launch in 2026 Amid Liquidity Push

- India to launch Asset Reserve Certificate (ARC) stablecoin in early 2026, aiming to reduce dollar dependency. - New stablecoin to boost domestic liquidity under strict regulatory oversight. India is preparing to revolutionize its digital finance ecosystem with plans to roll out a regulated, rupee-pegged stablecoin, the Asset Reserve Certificate (ARC), in the first quarter of 2026. According to reports on November 20, 2025, Polygon, a renowned Ethereum scaling solution, and Anq, a Bengaluru-headquartered fintech innovator, are jointly developing the ARC. The stablecoin is designed for one-to-one parity with the Indian Rupee and will be backed by a mix of cash reserves, fixed deposits, and government securities to ensure value stability and regulatory compliance. The project envisions ARC as part of a “Twin-Rupee” infrastructure that will complement India’s central bank digital currency (CBDC). In this dual-layer system, the Reserve Bank of India (RBI) will manage the CBDC as a secure settlement tool, while ARC tokens will facilitate faster, programmable financial interactions. This initiative aims to enhance blockchain-powered transactions, foster domestic liquidity, and reduce reliance on U.S. dollar-linked stablecoins, creating a more sovereign digital financial model. To ensure strict regulatory adherence, the project will make ARC tokens available exclusively to whitelisted corporate and institutional accounts. This controlled access is intended to prevent speculative activities and unauthorized trading, ensuring compliance with India's foreign exchange frameworks. By adhering to these safeguards, ARC seeks to reinforce digital monetary flows and enable the country to retain control over its economic policies. The ambitious ARC project symbolizes a strategic pivot to reduce dependence on foreign-backed stablecoins and nurture fintech innovation within India. Key stakeholders—from banks and tech firms to regulators—will be instrumental in embedding ARC within the country's digital finance landscape. Its success will hinge on seamless adoption, alignment with infrastructure, and enhanced market liquidity for government debt instruments, which are factors that will fortify India’s financial sovereignty. As of November 20 at 15:08 UTC, CoinMarketCap data shows Ethereum (ETH) at $2,976.26, reflecting a 3.59% drop in daily trading activity. Meanwhile, Polygon (POL) has climbed 2.68% within the same timeframe to trade at $0.15, and Uniswap (UNI) holds steady at $7.10 with a marginal 0.04% shift.