India’s First Sovereign-Backed Digital Token Coming via Polygon and Anq Partnership

• Polygon and Anq’s ARC initiative could redefine India’s digital finance by combining sovereign backed with blockchain scalability.
• The India’s partnership also strengthens confidence in Polygon’s ecosystem, signal to long-term growth potential for POL amid India’s expanding Web3 and tokenization efforts.

Polygon and fintech startup Anq are building a framework tentative called as the Asset Reserve Certificate (ARC) — a rupee-pegged digital token fully backed 1:1 by Government of India securities (G-Secs) and Treasury Bills. In simple terms, the goal is to creating a regulated, non-speculative digital layer that keeps liquidity onshore and deepens India’s bond market while offering fast, programmable payments.

According to a previous report by Crypto News Flash (CNF), Web3 adoption across India’s 450 million users has been propelled by Polygon’s earlier partnership with Jio. As stated by The Times of India,

Polygon’s involvement lends the initiative global credibility. Bengaluru-based Anq, meanwhile, brings a deep understanding of India’s regulatory landscape and has previously developed tokenization frameworks aimed at improving MSME liquidity and financial inclusion. Together, the two firms combine global infrastructure with domestic policy insight.

To be specific, Polygon and Anq were chosen because Polygon brings proven tokenization experience — working with large asset managers and stablecoin projects — along with the scalable of blockchain infrastructure. As also shared via tweety Polygon.

Big news.

Polygon Labs is joining forces with India’s largest telecom company for its web3 debut. @reliancejio will onboard 450+ million users by adding blockchain capabilities via Polygon PoS to select apps and services. pic.twitter.com/RaFRRN3DR2

— Polygon (@0xPolygon) January 16, 2025

The big news in India, the Anq contributes local regulatory and payments expertise. Their partnership aims to combine global blockchain technology with domestic policy sensitivity, which is essential for any sovereign-linked digital asset in India.

Market Implications for Polygon (POL) and Crypto in India

After a quiet period, this new ARC announcement from India, has put Polygon squarely in the spotlight as a key infrastructure choice for India’s tokenization push. Rather than a dramatic one-day spike to $0.42, POL’s movement after the news was modest while the announcement mainly sparked renew of interest in Polygon’s real-world asset narrative.

According to local news sources, the bigger signal is structural. Polygon already shows improving on-chain activity and grow with DeFi locks, making it a natural layer for compliant, sovereign-backed tokens. Moreover, total value locked (TVL) on Polygon has been steadily recovering this year.

For India, Based on DefiLlama and other market trackers, Polygon’s TVL stands around $1.2–$1.4 billion depending on the snapshot — up strongly year-to-date and reflecting renewed protocol activity across QuickSwap, lending vaults, and RWA projects.

With India’s Polygon and Anq partnership, the ARC announcement has reignited bullish momentum for Polygon’s native token, POL, which reportedly surged 12% in the 24 hours following the news. This partnership reinforces Polygon’s status as India’s go-to blockchain, driving network usage and TVL. See Polygon MATIC price chart below.