India is preparing to launch a regulated digital asset pegged to the rupee in early 2026.
According to sources familiar with the project, the company Polygon and fintech company Anq developed the Asset Reserve Certificate (ARC), token, backed by debt obligations and pegged to the rupee at a ratio of 1:1.
ARC will operate alongside the Reserve Bank of India’s central bank digital currency (CBDC), forming a two-tier architecture of digital payments. The first tier is CBDC, which serves as the official settlement infrastructure. The second layer is ARC tokens, which enable programmable payments, automated transactions, money transfers, and digital financial services.
The purpose of a digital asset is to preserve liquidity Within the Indian financial system, the country’s authorities have repeatedly expressed concern that local capital is increasingly investing in US dollar-denominated stablecoins, which could weaken the rupee and complicate control of the money supply.
It’s important to note that ARC tokens will not be issued for public circulation. Only corporate accounts, not individuals, will be allowed to create new digital tokens. This will «ensure the system complies with India’s strict foreign exchange regulations and prevent speculative abuse at the consumer level.»