Key facts
- Unique wallets in China conducting P2P stablecoin transactions increased 43-fold from Q1 2024 to Q2 2026.
Unique wallets engaging in peer-to-peer stablecoin transactions in China surged 43-fold between Q1 2024 and Q2 2026, according to Chainalysis. This growth occurred despite China's stringent crypto trading restrictions, indicating a shift towards direct wallet-to-wallet transfers for crypto activity. The analytics firm estimated China's crypto economy at $176 billion, with domestic P2P transactions comprising 59.1% of the total.
The significant growth in P2P stablecoin activity in China, despite regulatory crackdowns, highlights the resilience and adaptability of crypto markets in circumventing restrictions. This trend suggests a growing demand for decentralized financial tools and a potential shift in how digital assets are utilized within the Chinese economy, impacting global stablecoin flows and regulatory approaches.
The number of unique wallets conducting peer-to-peer (P2P) stablecoin transactions in China saw a dramatic 43-fold increase between the first quarter of 2024 and the second quarter of 2026, according to data from blockchain analytics firm Chainalysis. This surge in activity occurred despite China's stringent regulations and restrictions on cryptocurrency trading, suggesting a significant shift towards direct wallet-to-wallet transfers for crypto engagement.
During the 2026 reporting period, which spanned from July 2025 to June 2026, Chainalysis recorded $104.1 billion across 18.1 million transfers involving China’s self-custodied stablecoin holdings. The firm noted that stablecoin holdings turned over 33.2 times per year, a rate more than three times the global average of 9.3, indicating that users are treating stablecoins as working capital. Chainalysis estimates China's overall crypto economy to be worth at least $176 billion, with domestic P2P activity accounting for 59.1% of this total, a substantial increase from its share in the prior reporting period.
Authorities in China reinforced their crypto trading restrictions in February with new rules specifically targeting unauthorized yuan-pegged stablecoins and tokenized real-world assets. This regulatory environment contrasts with other East Asian markets. South Korea, for instance, was ranked as East Asia’s largest crypto economy at $449.1 billion, with retail traders favoring AI-linked tokens. Hong Kong stood out for its institutional activity, receiving nearly $24 billion in inbound business-to-business flows and issuing its first stablecoin licenses in April. In Japan, decentralized exchanges (DEXs) accounted for nearly 35% of service activity, with DEX swaps predominantly between $10 and $1,000, and DEX activity rising over 200% since 2022.
Pick the topics you care about. Get only what matters, on your cadence.