diff --git a/packages/cli/src/commands/create/arcade-token.ts b/packages/cli/src/commands/create/arcade-token.ts
new file mode 100644
index 0000000..05611ab
--- /dev/null
+++ b/packages/cli/src/commands/create/arcade-token.ts
@@ -0,0 +1,168 @@
+import { Command } from 'commander';
+import chalk from 'chalk';
+import ora from 'ora';
+import { createArcadeTokenInitTransaction } from '@mosaic/sdk';
+import { createSolanaClient } from '../../utils/rpc.js';
+import { loadKeypair } from '../../utils/solana.js';
+import {
+  generateKeyPairSigner,
+  signTransactionMessageWithSigners,
+  type Address,
+} from 'gill';
+
+interface ArcadeTokenOptions {
+  name: string;
+  symbol: string;
+  decimals: string;
+  uri?: string;
+  mintAuthority?: string;
+  metadataAuthority?: string;
+  pausableAuthority?: string;
+  permanentDelegateAuthority?: string;
+  mintKeypair?: string;
+  rpcUrl?: string;
+  keypair?: string;
+}
+
+export const createArcadeTokenCommand = new Command('arcade-token')
+  .description('Create a new arcade token with Token-2022 extensions')
+  .requiredOption('-n, --name <name>', 'Token name')
+  .requiredOption('-s, --symbol <symbol>', 'Token symbol')
+  .option('-d, --decimals <decimals>', 'Number of decimals', '0')
+  .option('-u, --uri <uri>', 'Metadata URI', '')
+  .option(
+    '--mint-authority <address>',
+    'Mint authority address (defaults to signer)'
+  )
+  .option(
+    '--metadata-authority <address>',
+    'Metadata authority address (defaults to mint authority)'
+  )
+  .option(
+    '--pausable-authority <address>',
+    'Pausable authority address (defaults to mint authority)'
+  )
+  .option(
+    '--permanent-delegate-authority <address>',
+    'Permanent delegate authority address (defaults to mint authority)'
+  )
+  .option(
+    '--mint-keypair <path>',
+    'Path to mint keypair file (generates new one if not provided)'
+  )
+  .action(async (options: ArcadeTokenOptions, command) => {
+    const spinner = ora('Creating arcade token...').start();
+
+    try {
+      // Get global options from parent command
+      const parentOpts = command.parent?.opts() || {};
+      const rpcUrl = options.rpcUrl || parentOpts.rpcUrl;
+      const keypairPath = options.keypair || parentOpts.keypair;
+
+      // Create Solana client with sendAndConfirmTransaction
+      const { rpc, sendAndConfirmTransaction } = createSolanaClient(rpcUrl);
+
+      // Load signer keypair
+      const signerKeypair = await loadKeypair(keypairPath);
+      const signerAddress = signerKeypair.address;
+
+      spinner.text = 'Loading keypairs...';
+
+      // Generate or load mint keypair
+      let mintKeypair;
+      if (options.mintKeypair) {
+        mintKeypair = await loadKeypair(options.mintKeypair);
+      } else {
+        mintKeypair = await generateKeyPairSigner();
+      }
+
+      // Parse decimals
+      const decimals = parseInt(options.decimals, 10);
+      if (isNaN(decimals) || decimals < 0 || decimals > 9) {
+        throw new Error('Decimals must be a number between 0 and 9');
+      }
+
+      // Set authorities (default to signer if not provided)
+      const mintAuthority = (options.mintAuthority || signerAddress) as Address;
+      const metadataAuthority = (options.metadataAuthority ||
+        mintAuthority) as Address;
+      const pausableAuthority = (options.pausableAuthority ||
+        mintAuthority) as Address;
+      const permanentDelegateAuthority = (options.permanentDelegateAuthority ||
+        mintAuthority) as Address;
+
+      spinner.text = 'Building transaction...';
+
+      // Create arcade token transaction
+      const transaction = await createArcadeTokenInitTransaction(
+        rpc,
+        options.name,
+        options.symbol,
+        decimals,
+        options.uri || '',
+        mintAuthority,
+        mintKeypair,
+        signerKeypair,
+        metadataAuthority,
+        pausableAuthority,
+        undefined, // Arcade tokens don't use confidential balances
+        permanentDelegateAuthority
+      );
+
+      spinner.text = 'Signing transaction...';
+
+      // Sign the transaction
+      const signedTransaction =
+        await signTransactionMessageWithSigners(transaction);
+
+      spinner.text = 'Sending transaction...';
+
+      // Send and confirm transaction
+      const signature = await sendAndConfirmTransaction(signedTransaction);
+
+      spinner.succeed('Arcade token created successfully!');
+
+      // Display results
+      console.log(chalk.green('✅ Arcade Token Creation Successful'));
+      console.log(chalk.cyan('📋 Details:'));
+      console.log(`   ${chalk.bold('Name:')} ${options.name}`);
+      console.log(`   ${chalk.bold('Symbol:')} ${options.symbol}`);
+      console.log(`   ${chalk.bold('Decimals:')} ${decimals}`);
+      console.log(`   ${chalk.bold('Mint Address:')} ${mintKeypair.address}`);
+      console.log(`   ${chalk.bold('Transaction:')} ${signature}`);
+
+      console.log(chalk.cyan('🔐 Authorities:'));
+      console.log(`   ${chalk.bold('Mint Authority:')} ${mintAuthority}`);
+      console.log(
+        `   ${chalk.bold('Metadata Authority:')} ${metadataAuthority}`
+      );
+      console.log(
+        `   ${chalk.bold('Pausable Authority:')} ${pausableAuthority}`
+      );
+      console.log(
+        `   ${chalk.bold('Permanent Delegate Authority:')} ${permanentDelegateAuthority}`
+      );
+
+      console.log(chalk.cyan('🎮 Token Extensions:'));
+      console.log(`   ${chalk.green('✓')} Metadata (Rich Gaming Metadata)`);
+      console.log(`   ${chalk.green('✓')} Pausable`);
+      console.log(`   ${chalk.green('✓')} Default Account State (Allowlist)`);
+      console.log(
+        chalk.yellow(
+          '     ⚠️  You must add addresses to the allowlist for your arcade token to be usable by end users.'
+        )
+      );
+      console.log(`   ${chalk.green('✓')} Permanent Delegate`);
+
+      if (options.uri) {
+        console.log(`${chalk.bold('Metadata URI:')} ${options.uri}`);
+      }
+    } catch (error) {
+      spinner.fail('Failed to create arcade token');
+      console.error(
+        chalk.red('❌ Error:'),
+        error instanceof Error ? error.message : 'Unknown error'
+      );
+      process.exit(1);
+    }
+  });
diff --git a/packages/cli/src/commands/create/stablecoin.ts b/packages/cli/src/commands/create/stablecoin.ts
index c7147e1..055391f 100644
--- a/packages/cli/src/commands/create/stablecoin.ts
+++ b/packages/cli/src/commands/create/stablecoin.ts
@@ -100,7 +100,7 @@ export const createStablecoinCommand = new Command('stablecoin')
 
       spinner.text = 'Building transaction...';
 
-      // Create stablecoin using Token class
+      // Create stablecoin transaction
       const transaction = await createStablecoinInitTransaction(
         rpc,
         options.name,
diff --git a/packages/cli/src/index.ts b/packages/cli/src/index.ts
index 26bd2ec..60825dc 100644
--- a/packages/cli/src/index.ts
+++ b/packages/cli/src/index.ts
@@ -2,6 +2,7 @@
 
 import { Command } from 'commander';
 import { createStablecoinCommand } from './commands/create/stablecoin.js';
+import { createArcadeTokenCommand } from './commands/create/arcade-token.js';
 
 const program = new Command();
 
@@ -15,8 +16,9 @@ const createCommand = program
   .command('create')
   .description('Create new tokens with Token-2022 extensions');
 
-// Add stablecoin creation command
+// Add token creation commands
 createCommand.addCommand(createStablecoinCommand);
+createCommand.addCommand(createArcadeTokenCommand);
 
 // Global options
 program
diff --git a/packages/sdk/src/templates/arcadeToken.ts b/packages/sdk/src/templates/arcadeToken.ts
index 4c79322..36cc597 100644
--- a/packages/sdk/src/templates/arcadeToken.ts
+++ b/packages/sdk/src/templates/arcadeToken.ts
@@ -6,6 +6,8 @@ import type {
   FullTransaction,
   TransactionMessageWithFeePayer,
   TransactionVersion,
+  TransactionSigner,
+  TransactionWithBlockhashLifetime,
 } from 'gill';
 import { createNoopSigner } from 'gill';
 
@@ -37,18 +39,25 @@ export const createArcadeTokenInitTransaction = async (
   decimals: number,
   uri: string,
   mintAuthority: Address,
-  mint: Address,
-  feePayer: Address,
+  mint: Address | TransactionSigner<string>,
+  feePayer: Address | TransactionSigner<string>,
   metadataAuthority?: Address,
   pausableAuthority?: Address,
   confidentialBalancesAuthority?: Address,
   permanentDelegateAuthority?: Address
 ): Promise<
-  FullTransaction<TransactionVersion, TransactionMessageWithFeePayer>
+  FullTransaction<
+    TransactionVersion,
+    TransactionMessageWithFeePayer,
+    TransactionWithBlockhashLifetime
+  >
 > => {
+  const mintSigner = typeof mint === 'string' ? createNoopSigner(mint) : mint;
+  const feePayerSigner =
+    typeof feePayer === 'string' ? createNoopSigner(feePayer) : feePayer;
   const tx = await new Token()
     .withMetadata({
-      mintAddress: mint,
+      mintAddress: mintSigner.address,
       authority: metadataAuthority || mintAuthority,
       metadata: {
         name,
@@ -66,8 +75,8 @@ export const createArcadeTokenInitTransaction = async (
       rpc,
       decimals,
       authority: mintAuthority,
-      mint: createNoopSigner(mint),
-      feePayer: createNoopSigner(feePayer),
+      mint: mintSigner,
+      feePayer: feePayerSigner,
     });
 
   return tx;