JUST IN: India Plans To Launch Arc, a Rupee-Pegged Digital Asset Built on Polygon, in Q1 2026
India is reportedly preparing to issue a new stable digital asset called the Asset Reserve Certificate (ARC) in Q1 2026. The project is a collaboration between Polygon and Indian fintech Anq, and the token is designed to be fully backed 1:1 by the Indian rupee. What Is ARC? ARC, or Asset Reserve Certificate, is not a speculative token — it’s a fully collateralized stablecoin, built to mirror the value of the rupee. According to insiders, its reserves will come from highly secure instruments like Indian Government Securities (G-secs), treasury bills, fixed deposits, or cash equivalents. Each ARC token is promised to trade at par with the rupee, and will only be minted when issuers deposit qualifying reserves. Why Is India Issuing ARC? The initiative appears to be a strategic response to growing capital outflows into dollar-backed stablecoins like USDC and USDT. By launching a rupee‑pegged stablecoin, India aims to: How Will ARC Fit with the RBI’s Digital Rupee? ARC is not intended to replace the Reserve Bank of India’s Central Bank Digital Currency (CBDC). Instead, it will operate in a two-tier framework: This setup allows the public sector to retain control over the monetary base, while still supporting private-sector innovation in blockchain-based financial services. Who Can Mint ARC — And How Will It Be Traded? ARC minting privileges will be restricted to corporate or institutional accounts only, not retail users. This restriction aligns with India’s partial convertibility framework, under which the rupee is fully convertible only for current-account transactions (such as trade or remittances), but remains constrained for capital account flows. On the trading side, ARC plans to use Uniswap v4 “hooks” to impose strict access controls: only whitelisted addresses will be able to swap ARC. This design is very much in line with regulatory compliance — making ARC decentralized in infrastructure but permissioned in practice. Economic & Regulatory Implications Why Now? There’s rising urgency in India’s policy circles. Sources highlight concern that dollar‑pegged stablecoins could undermine domestic liquidity. Emerging markets more broadly are worried about capital hemorrhaging into U.S.-denominated tokens. The urgency is amplified by legislation in the U.S. — such as the GENIUS Stablecoin Act — which some view as solidifying the dominance of dollar-backed stablecoins. By proactively building a sovereign-backed stablecoin, India is signaling that it wants to compete in the on-chain finance space — but on its own terms. Challenges & Risks While the ARC proposal is bold, it’s not without risk: The Bigger Picture If successfully launched, ARC could become a template for how emerging economies balance monetary sovereignty and blockchain innovation. Rather than banning stablecoins altogether, India is building a domestically anchored, regulated token that supports growth — not speculation. By tying digital assets to sovereign debt, India may be laying the groundwork for a web3-native, debt-financed financial architecture. That’s a powerful move, especially as global stablecoin regulation tightens and the role of CBDCs continues to grow.
JUST IN: Billionaire Ray Dalio Says 1% of His Portfolio Is in Bitcoin
Billionaire hedge fund founder Ray Dalio has reaffirmed his long-standing cautious stance on Bitcoin, confirming that only about 1% of his portfolio is allocated to the cryptocurrency. Despite being one of the most respected macro investors of the past five decades, Dalio remains skeptical about Bitcoin’s ability to grow into a global reserve asset—even as he continues to hold a small, steady position. Key Takeaways Dalio Confirms 1% Bitcoin Allocation Speaking on CNBC’s Squawk Box, Dalio said his Bitcoin exposure has barely changed over the years and continues to serve as a small, passive piece of his broader strategy. “I have a small percentage of Bitcoin… I’ve had it forever, like 1% of my portfolios,” Dalio said. His remarks come during a period of heightened market sensitivity. Bitcoin recently traded below $90,000 following uncertainty triggered by delayed U.S. jobs data, a move that rippled through tech stocks and broader risk assets. Yet despite market volatility, Dalio made it clear he has no intention of expanding his Bitcoin position. Why Dalio Believes Bitcoin Won’t Become a Reserve Asset Dalio has repeatedly argued that Bitcoin cannot serve as a reserve currency for major economies. His reasoning centers on transparency, technical constraints, and the political realities of global monetary systems. “It’s not going to be a reserve currency for major countries because it can be tracked,” he said. The public nature of Bitcoin’s ledger, he argues, makes it unsuitable for large governments that rely on opaque, flexible monetary controls. According to Dalio, no leading nation would build its financial foundation on a system where transactions are permanently recorded in public view. Quantum Computing and Long-Term Security Concerns Dalio also expressed concern about the future of cryptographic security. While Bitcoin has never been hacked, he believes emerging technologies—especially quantum computing—pose potential long-term threats. “It could be conceivably, with quantum computing, controlled, hacked, and so on and so forth,” he warned. These comments reflect a broader debate taking place within the crypto community. Chainalysis recently suggested that quantum computing could begin challenging Bitcoin’s underlying cryptography within the next decade, and Solana cofounder Anatoly Yakovenko argued the network might need a quantum-resistant upgrade by around 2030. Such a change would require a controversial hard fork. Others—such as Blockstream CEO Adam Back—downplay the threat, noting that quantum computing remains far from being powerful enough to break Bitcoin’s cryptographic defenses. Still, Dalio’s stance highlights a core vulnerability that he believes makes Bitcoin an unlikely candidate for global monetary leadership. Dalio’s History With Bitcoin: From Skepticism to Measured Acceptance Dalio’s views on Bitcoin have evolved over time. When he first entered the crypto market in 2021, he cautioned heavily against its regulatory risks, famously stating: “If it becomes really successful, they will kill it. And they have ways of killing it.” By late 2021 and into 2022, however, Dalio acknowledged Bitcoin’s durability, noting it had “proven itself” by resisting attacks and remaining operational despite global scrutiny. More recently, Dalio even suggested investors could place up to 15% of their portfolio in assets such as Bitcoin or gold. Still, his skepticism remains intact—especially regarding Bitcoin’s future security and regulatory uncertainty. Influence From Crypto Leaders In a lighthearted remark, Binance founder Changpeng “CZ” Zhao hinted that he may have played a small role in Dalio’s decision to keep Bitcoin in his portfolio. “I might have contributed a tiny bit in influencing him. I learned more from him in exchange of course.,” CZ said. While Dalio downplayed any external pressure, the acknowledgment reflects Bitcoin’s growing influence among traditional and crypto-native financial leaders alike. Bridgewater’s Massive Traditional Portfolio Dalio’s Bitcoin commentary comes alongside fresh disclosures from Bridgewater Associates. The hedge fund’s latest 13F filing revealed a $25.53 billion U.S. equities portfolio spanning more than 1,000 positions, with heavy exposure to mega-cap tech and index ETFs. The filing reinforces what Dalio has made clear for years: his Bitcoin allocation, though notable, remains a footnote in a deeply diversified investment empire.