Key Points:
- The number of unique wallets sending P2P stablecoin transactions in China increased 43-fold between Q1 2024 and Q2 2026, according to Chainalysis.
- China-linked self-custodied stablecoin holdings processed $104.1 billion across 18.1 million transfers during the 2026 reporting period.
- Domestic P2P activity accounted for 59.1% of China’s estimated $176 billion crypto economy, highlighting the growing role of direct wallet-to-wallet transactions despite restrictions.
China’s peer-to-peer stablecoin activity has expanded sharply despite the country’s longstanding restrictions on cryptocurrency trading, with the number of unique wallets sending P2P stablecoin transactions rising 43-fold between the first quarter of 2024 and the second quarter of 2026.
The figures come from blockchain analytics firm Chainalysis, which identified $104.1 billion in activity across 18.1 million transfers involving self-custodied stablecoin holdings in China during its 2026 reporting period, covering July 2025 through June 2026.
The data suggests that crypto activity in China is increasingly moving toward direct wallet-to-wallet transactions, allowing users to interact with stablecoins outside conventional centralized exchange channels.
Stablecoins Used as Working Capital
Chainalysis estimated that Chinese stablecoin holdings turned over 33.2 times per year during the reporting period, more than three times the global average of 9.3 times.
The analytics firm said the high turnover rate was consistent with users treating stablecoins as working capital rather than simply holding them as long-term investments. Frequent movement of stablecoins can indicate their use for payments, transfers, trading activity or other financial transactions.
The scale of activity also contributed to Chainalysis’ estimate that China’s overall crypto economy was worth at least $176 billion during the period.
Domestic P2P activity represented 59.1% of that total, with its share increasing to 3.5 times the proportion recorded during the previous reporting period.
P2P Growth Persists Despite Restrictions
The expansion is notable given China’s continued restrictions on cryptocurrency-related activity.
Chinese authorities reinforced those restrictions in February with additional rules targeting unauthorized yuan-pegged stablecoins and tokenized real-world assets. Despite the regulatory environment, Chainalysis’ data indicates that users have continued to participate in stablecoin activity through self-custodied wallets and direct transactions.
The shift toward P2P activity illustrates how cryptocurrency usage can adapt when traditional trading channels become more restricted. Rather than relying exclusively on centralized platforms, users can transact directly between blockchain addresses, although such activity remains subject to the broader regulatory environment.
South Korea Leads East Asia by Crypto Economy
China’s P2P-heavy activity contrasts with neighboring markets that have developed different patterns of crypto adoption.
Chainalysis ranked South Korea as East Asia’s largest crypto economy, with $449.1 billion in estimated activity. The market grew 12.3% from the previous reporting period, while retail traders showed a strong preference for tokens linked to artificial intelligence.
The differences between China and South Korea highlight how regulatory structures and market preferences can shape the way digital assets are used. China’s activity has increasingly centered on direct transfers, while South Korea maintains a large retail trading ecosystem.
Hong Kong Shows Institutional Focus
Hong Kong presented a different model, with institutional activity playing a larger role in the local crypto economy.
According to Chainalysis, institutional platforms accounted for 16% of service inflows in Hong Kong, nearly three times the share recorded in any neighboring market. The city also received almost $24 billion in inbound business-to-business flows.
Hong Kong’s regulatory infrastructure has continued to develop alongside this institutional activity. The city issued its first stablecoin licenses in April, providing a regulated framework for stablecoin issuers.
Japan Sees Rapid DEX Expansion
Japan has also developed a distinct market structure, with decentralized exchanges accounting for nearly 35% of service activity, the highest share among mature East Asian markets in the Chainalysis analysis.
The firm found that 65.7% of Japanese DEX swaps were between $10 and $1,000, indicating significant participation from smaller transactions. DEX activity in Japan has also increased more than 200% since 2022.
Japanese lawmakers further expanded the formal regulatory framework in July by passing revisions that bring digital assets under the country’s financial-markets regime.
Outlook
China’s 43-fold increase in unique wallets sending P2P stablecoin transactions demonstrates the extent to which digital asset activity can migrate toward alternative channels despite restrictions on conventional crypto trading.
The $104.1 billion in stablecoin transfers and the high turnover rate identified by Chainalysis suggest that stablecoins are being used for more than passive exposure, with activity consistent with working-capital and transactional use. At the same time, the contrasting models in South Korea, Hong Kong and Japan show that East Asia’s digital asset market is developing through distinct combinations of retail trading, institutional adoption, decentralized exchanges and P2P activity.
Comparison, examination, and analysis between investment houses
Leave your details, and an expert from our team will get back to you as soon as possible
