When you hear stablecoins, three names instantly stand out: USDT (Tether), USDC (USD Coin), and DAI.

• USDT (Tether): Tether is the world’s most widely used stablecoin. As the pioneer, it’s present across almost every crypto exchange and blockchain ecosystem. Its liquidity and ubiquity make it the default choice for traders looking to move funds quickly and efficiently.

• USDC (USD Coin): USDC is the stablecoin of choice for those who value compliance and transparency. Issued by regulated institutions, its reserves are rigorously audited, earning the trust of businesses and institutions who need regulatory clarity.

• DAI: Unlike the previous two, DAI is decentralized and managed by smart contracts via the MakerDAO protocol. Instead of cash in a traditional bank, DAI is backed by crypto collateral, making it the heart of DeFi-native stablecoin adoption.

Together, these “Big 3” account for over 90% of the stablecoin market, each driving a unique philosophy:

• Centralized convenience (USDT, USDC)

• Decentralized innovation (DAI)

Newcomers like FRAX, PYUSD, and USDe are emerging rapidly, but the market leaders set the pace.

India is making headlines with its recent steps towards INR-backed stablecoins. The most notable new entrant is ARC , India’s first INR-backed stablecoin, launched on Polygon and powered by Anq. This development bridges traditional finance with Web3, enabling fast settlements and true on-chain stability with INR as the reference currency.

• The global stablecoin market is dominated by dollar-backed coins. For India, developing an INR-backed stablecoin means strengthening the rupee’s role in global trade and keeping domestic liquidity tied to sovereign instruments.
  

• The Reserve Bank of India (RBI) has been cautious, favoring the Digital Rupee (CBDC) for retail and wholesale settlements. But ARC is designed to complement, not replace, the e-Rupee by deepening India’s G-Sec market and internationalizing the rupee.

Recent industry voices and policy summits have called for India to act fast—otherwise, other countries will internationalize their currency in crypto and India risks falling behind. The regulatory environment is becoming more receptive, especially with models like the US GENIUS Act showing that sovereign-backed, regulated stablecoins are possible. ARC shows that India is now officially in the stablecoin race.

India has previously experimented with rupee-backed stablecoins—but most initiatives failed due to a combination of policy and practical challenges:

• Regulatory Vacuum: India’s regulatory framework was hesitant to allow private stablecoins, fearing a loss of control over monetary policy and capital flows. RBI’s cautious approach has prioritized stability and control—any private stablecoin risked undermining these priorities

• No Demonstrated Need: India already boasts robust instant settlement systems like UPI, RTGS, and NEFT. Stablecoins sometimes seemed like solutions searching for problems, especially when central bank money already enabled fast, cost-effective transactions domestically

• Custody and Risk Management: Earlier projects lacked fully transparent reserves, proper audits, and clear redemption mechanisms during market stress. Some tried algorithmic or partially collateralized models, which failed globally (e.g., TerraUSD, Iron Finance).

• Weak Banking Partnerships: Projects that relied on one banking partner were vulnerable; failure of that partner or regulatory pushback led to redemptions freezing and user losses.

• Lack of Deep Exchange and DeFi Integration: Without strong ties to major Indian exchanges, earlier stablecoins suffered low liquidity and slow adoption.
  

India’s new effort with ARC aims to fix previous weaknesses—leveraging government collaboration, blockchain transparency, and deep integration with India’s financial infrastructure.

For India to win with INR stablecoins, it must:

• Create clear, supportive regulations to boost confidence and innovation.

• Partner with top banks and FinTechs for secure, easy access.

• Educate the public about stablecoins’ benefits and risks.

• Integrate INR stablecoins into UPI, DeFi, and day-to-day payments.

• Coordinate with global standards to open the rupee to international markets.

• Grow a thriving local blockchain and Web3 ecosystem.

• Collaborate with compliant on/off-ramp providers like Onramp.money, etc to make stablecoins accessible to the masses.
  

Stablecoins like USDT, USDC, and DAI set the global standard, but India is primed to catch up. With the right steps—regulation, transparency, and user-friendly integration—India’s INR stablecoins can make remittances faster, put the rupee on the global map, and spark homegrown innovation.

Onramp.money continues to play a quiet yet pivotal role in this mission, steadily bridging fiat and crypto access for India’s growing Web3 community.

India isn’t just joining the stablecoin race. With focus and collaboration, it can lead the next wave of digital finance.