Unique wallets sending peer-to-peer stablecoin transactions in China increased 43-fold between the first quarter of 2024 and the second quarter of 2026, according to Chainalysis, a blockchain analytics company. The surge reflects a fundamental shift in how Chinese users move value amid the country’s longstanding restrictions on crypto trading.
During the July 2025 to June 2026 reporting period, China recorded $104.1 billion in stablecoin transfers across 18.1 million transactions. Chainalysis found that stablecoin holdings in China turned over 33.2 times per year, more than three times the global average of 9.3 times annually. This velocity suggests users treat stablecoins as working capital rather than long-term holdings.
Domestic P2P Activity Dominates
Peer-to-peer activity accounted for 59.1% of China’s total stablecoin transfers, a share that increased 3.5 times compared to the previous reporting period. This shift toward direct wallet-to-wallet transfers accelerated even as regulatory pressure intensified. In February 2026, the Peoples Bank of China reinforced existing crypto restrictions with new rules targeting unauthorized yuan-pegged stablecoins and tokenized real-world assets.
March 2026 recorded the largest monthly increase in domestic stablecoin transfer volume at $4.9 billion, suggesting continued user demand despite tightening oversight.
Regional Divergence in East Asia
China’s stablecoin activity reflects a broader pattern of divergent crypto adoption strategies across East Asia. South Korea’s crypto economy reached $449.1 billion in value, the largest in the region, with retail traders showing strong preference for AI-linked tokens. Growth in South Korea measured 12.3% from the previous period.
Hong Kong emerged as a hub for institutional activity. Institutional platforms accounted for 16% of service inflows, nearly three times the share in any regional neighbor. In April 2026, Hong Kong issued its first stablecoin licenses, positioning the territory as a regulated entry point for digital assets in the region.
Japan’s decentralized exchanges accounted for nearly 35% of service activity, the highest share among mature East Asian markets. DEX swaps between $10 and $1,000 represented 65.7% of Japan’s DEX volume. DEX activity in Japan increased 200% since 2022.
China’s Crypto Economy Scale
Chainalysis estimated China’s crypto economy at $176 billion in value. The concentration of activity in peer-to-peer channels rather than centralized platforms reflects both user preference for self-custody and the absence of domestically licensed crypto exchanges. Users appear to have adapted their transaction patterns to operate within regulatory constraints while maintaining access to stablecoin liquidity.
The 43-fold growth in unique wallets signals sustained demand for stablecoin functionality despite restrictions. Whether this activity represents a permanent shift in user behavior or a temporary response to enforcement cycles remains unclear from available data.
