China’s P2P Stablecoin Wallets Grow 43x Despite Crypto Restrictions, According to Chainalysis
Chainalysis released a report highlighting that the number of unique wallets conducting peer-to-peer (P2P) stablecoin transactions in China surged 43-fold between Q1 2024 and Q2 2026. Despite stringent Chinese regulations on cryptocurrencies, $104.1 billion worth of self-custodied stablecoin transfers were recorded during the reporting period from July 2025 to June 2026, indicating active use of these tokens as working capital.
Rising P2P Stablecoin Activity in China
The Chainalysis report indicates that the number of unique wallets engaging in P2P stablecoin transfers in China increased 43 times from early 2024 to mid-2026. During the reporting period spanning July 2025 to June 2026, 18.1 million such transfers totaled $104.1 billion.
Stablecoin holdings turned over 33.2 times annually, more than triple the global average of 9.3, underscoring users' utilization of stablecoins as working capital in their financial activities.
China’s Crypto Economy Size and P2P Significance
Chainalysis estimates China's crypto economy to be worth at least $176 billion, with domestic P2P activity constituting 59.1% of total volume—3.5 times higher than in the previous 2025 reporting period.
This surge in P2P transactions occurs despite China’s longstanding crypto trading bans, which were reinforced in February with new regulations targeting unauthorized yuan-pegged stablecoins and tokenized real-world assets.
Distinct Crypto Market Features in East Asia
South Korea, contrasting with China’s P2P-driven market, is East Asia’s largest crypto economy valued at $449.1 billion, with a 12.3% activity increase over the last period. Retail traders show strong preference for AI-related tokens.
Hong Kong stands out for its institutional activity: institutional platforms represent 16% of service inflows, nearly triple that of neighboring regions, with about $24 billion in inbound B2B flows in early 2026. The city introduced its first stablecoin licenses in April.
Japan features a prominent role for decentralized exchanges (DEXs), responsible for nearly 35% of service activity—the highest among mature East Asian markets. Most DEX swaps range between $10 and $1,000, with activity up over 200% since 2022.
Japanese lawmakers approved regulatory revisions in July that integrate digital assets under the nation’s financial markets regulatory framework.
Why it matters
The sharp rise in P2P stablecoin wallets in China highlights a growing crypto activity despite tightened government restrictions. This trend illustrates how Chinese users are adapting by utilizing cryptocurrencies as instruments for business operations and liquidity management outside traditional financial channels. Understanding this dynamic is important for grasping how major economies with crypto bans still foster unique crypto ecosystems. The comparison with neighboring East Asian markets, where different market structures and asset usage patterns prevail, further enriches the analysis of regional digital asset developments.
Prepared from the source material with AI-assisted editing and checked against the supplied facts.
Open original source ↗