Polygon & Anq Launch India’s First Rupee-Backed Stablecoin ‘ARC’, Ushering a New Era in Digital Finance
Polygon and Anq Launch India’s First Rupee-Backed Stablecoin ‘ARC’ in Landmark Move
India has taken a decisive step into the digital financial era with the introduction of its first-ever rupee-backed stablecoin, Asset Reserve Certificate (ARC), jointly developed by Polygon and Anq Finance. This new initiative marks the beginning of a historic collaboration between blockchain technology and the Indian financial system — blending innovation, regulation, and national economic growth.
The launch of ARC aims to create a digitally stable, fully asset-backed version of the Indian rupee, bridging traditional finance with the blockchain-powered future. Unlike speculative cryptocurrencies that swing in value, ARC promises stability, security, and legal backing, directly tied to India’s government securities and Treasury Bills.
A New Era for India’s Digital Finance System
The India Stablecoin ARC is designed to maintain a one-to-one peg with the Indian rupee (INR). For every ARC token in circulation, an equivalent value of Indian government securities (G-Secs) or Treasury Bills will be held in reserve.
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This structure ensures transparency, safety, and accountability — offering a model of how blockchain technology can strengthen, rather than disrupt, existing national financial systems.
According to industry experts, the move signals India’s willingness to embrace blockchain technology not as a speculative tool but as an essential part of its long-term digital economic strategy. With ARC, the country can now digitize its financial assets, support instant payments, and reduce reliance on foreign-backed stablecoins such as USDT or USDC.
“This is not just another crypto project — it’s a new financial instrument that connects India’s economy with the global blockchain ecosystem,” said one financial analyst based in Mumbai. “By linking ARC to government bonds, India has effectively created a trusted digital version of its currency.”
How ARC Works: The Twin-Rupee Model
Unlike other blockchain tokens, ARC is part of what developers are calling the Twin-Rupee Model — a dual-layer system where the RBI-controlled Central Bank Digital Currency (CBDC) coexists with the Polygon-Anq-issued ARC stablecoin.
Under this structure:
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CBDC (Central Bank Digital Currency) is used for official settlements, banking transfers, and regulated financial transactions under the supervision of the Reserve Bank of India (RBI).
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ARC (Asset Reserve Certificate), on the other hand, operates within the private fintech and blockchain ecosystem, enabling programmable payments, instant settlements, and smart contract integration.
This model allows India’s central bank to maintain control over the money supply, while private companies leverage blockchain technology to enhance efficiency, innovation, and inclusion.
Financial experts see this as a hybrid model that could influence other emerging economies. By maintaining state oversight while encouraging technological development, India might have found the balance between innovation and regulation that many nations have struggled to achieve.
Why the ARC Launch Matters for Investors and the Economy
For investors and the broader financial community, the introduction of the India Stablecoin ARC represents a seismic shift in how value is stored, moved, and managed.
Each ARC token represents a claim on government-backed value. This means investors, institutions, and everyday users can hold a digital token that is directly linked to sovereign assets.
The implications are massive:
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Economic Retention – Money that once flowed to foreign stablecoins can now remain within the Indian financial system.
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Lower Borrowing Costs – With increased liquidity in government securities, the cost of borrowing for businesses could drop significantly.
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Faster Settlements – Businesses can send and receive payments instantly using ARC, bypassing traditional banking delays.
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Enhanced Financial Inclusion – Small businesses and individuals can access blockchain-powered payment tools without relying on external currencies.
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Strengthened Rupee Stability – The ARC token reinforces confidence in the Indian rupee as a digital reserve asset.
Economists suggest that this initiative could also expand India’s bond market by creating higher demand for government securities — a move that not only strengthens public finance but also provides more opportunities for domestic investment.
The Technology Behind ARC
The ARC Stablecoin Project is powered by Polygon, one of the world’s leading blockchain networks known for its scalability, security, and partnerships with global enterprises. Polygon brings robust blockchain infrastructure and smart contract technology to the table.
Anq Finance, headquartered in Bengaluru, contributes its expertise in financial inclusion, digital asset management, and local regulatory compliance. Anq has built blockchain tools designed to help small businesses access modern financial systems, ensuring that India’s shift toward digital money is both inclusive and compliant.
Together, Polygon and Anq represent a fusion of global blockchain technology and local financial expertise — creating a product that is both technically sophisticated and deeply rooted in India’s economic realities.
“By combining Polygon’s technology with India’s financial structure, we’re creating something that can redefine how digital money interacts with the real economy,” said a spokesperson for Anq.
The Broader Global Context
Globally, stablecoins have often been associated with private or foreign entities — typically backed by US dollars or other major fiat currencies. India’s ARC is different.
By using domestic assets as collateral, the country is taking a bold stance in digital sovereignty. The move ensures that national wealth remains within its borders, supporting India’s goal of self-reliant financial development.
Analysts note that if ARC proves successful, it could become a blueprint for other nations looking to build regulated, government-backed digital currencies without fully surrendering to central bank monopolies or unregulated crypto systems.
“This could be a model for the future,” said economist Dr. Meera Gupta. “Countries like Indonesia, Brazil, or South Africa could follow a similar framework — where blockchain is used to secure the value of national currencies rather than threaten them.”
What Comes Next for ARC
The official launch of ARC is expected to roll out in phases, starting with pilot implementations across select fintech and payment platforms. Users will soon be able to mint, redeem, and transfer ARC tokens using blockchain wallets integrated with India’s digital payment systems.
Over time, ARC could also support:
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Cross-border remittances between Indian citizens abroad and domestic users.
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Smart contract-based financial products, such as programmable loans or tokenized assets.
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Integration with decentralized finance (DeFi) applications under regulated environments.
If adopted widely, ARC could significantly reduce international transfer costs, simplify compliance, and position India as a leader in regulated blockchain finance.
Conclusion
The introduction of the ARC Stablecoin by Polygon and Anq is a defining moment in India’s digital transformation journey. It reflects a national vision that embraces blockchain innovation while maintaining financial discipline and sovereignty.
By creating a secure, transparent, and rupee-backed digital token, India is not only future-proofing its economy but also setting a global example of how emerging nations can harness blockchain technology responsibly.
As the world watches closely, the ARC project stands as proof that the future of money may not lie in unregulated cryptocurrencies, but in stable, government-backed digital assets that unite technology and trust.
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