In a step that can redefine the digital landscape in India, Polygon blockchain and Bengaluru-based fintech Anq are developing ARC Token: India’s first full-fledged sovereign-backed stablecoin, as reported by popular media publications. This coin, which stands for Asset Reserve Certificate, will be an Indian government-securities pegged stablecoin that transforms every token minted into fresh demand for G-Secs. It is highly speculated that if this token is launched in the coming 3-6 months as scheduled, India will overnight own the world’s most credible non-dollar stablecoin—regulated, non-speculative, and 100 % Made-in-India.
What is the ARC Token?
India currently leaks $15–20 billion worth of liquidity every year into USDT and USDC. Whenever an Indian trader, NRI, or business purchases dollar stablecoins, that is eventually spent on U.S. Treasury bills or commercial paper, financing the American government rather than our government. This token works the other way around: every new ARC Token can only be created by locking up fresh Indian G-Secs or Treasury Bills. Result? Indian digital money now finances Indian development.
How does the ARC Token work?
- One Token = is supposed to be equal to ₹1 of sovereign debt locked in a regulated custodian bank
- Minting rule – Zero token unlocks without simultaneous G-Sec purchase
- Burning rule – Redeem ARC Token, get rupees, underlying bond is released
- Real-time audit – Every reserve that was published on-chain and is verifiable by anyone 24×7
- Issuance only by licensed entities – It is likely that RBI-approved banks & NBFCs, no fly-by-night operators
What makes ARC Token different from USDT/USDC?
Can ARC Token slash remittance costs?
Absolutely. Existing remittance systems drain users with 5-7% fees and 2-5 days of delay. The ARC Token promises:
- Almost free cross-border transfer (fractions of a percent)
- Immediate payment (no days, just seconds)
- Built-in KYC/AML compliance.
- Direct INR ↔ INR flow without dollar conversion rip-offs
Does ARC Token challenge RBI’s Digital Rupee?
This is where the genius “Twin-Rupee” architecture shines. This is specifically designed not to conflict with the RBI:
- Layer 1 (Settlement) → RBI e₹ (CBDC) -fully controlled by the central bank.
- Layer 2 (Interaction) → ARC Token is issued by regulated non-public sector participants (banks, fintech) to make fast and programmable payments.
Conclusion
When Sandeep Nailwal said in September, “India will have its own stablecoin in 3 months”, he wasn’t hyping. He was reading the launch calendar.
The ARC Token is India’s answer to a world that is addicted to dollar stablecoins. It retains Indian money in India, and is expected to cut remittance expenses by almost 99%, diversify the G-Sec market, and provides the RBI with a private-sector engine that even Singapore and Switzerland will envy.
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Frequently Asked Questions
Which firms are behind the ARC token?
It is being developed by Polygon blockchain and Bengaluru-based fintech company, Anq.
Will it impact the Digital Rupee?
No, it is specifically designed not to conflict with the RBI’s Digital Rupee.
By how much will the ARC Token reduce remittances?
By almost 99%
