China Sees 43-Fold Surge in P2P Stablecoin Wallets Despite Crypto Crackdown
Despite China's strict stance on cryptocurrency trading, stablecoin usage has surged dramatically, according to a new report by blockchain analytics firm Chainalysis. The number of unique wallets sending peer-to-peer (P2P) stablecoin transactions in China jumped 43-fold from the first quarter of 2024 to the second quarter of 2026. During the reporting period from July 2025 to June 2026, China recorded $104.1 billion across 18.1 million transfers tied to stablecoins held in self-custody.
The report highlights that stablecoin holdings in China changed hands 33.2 times per year, more than three times the global average of 9.3. This high turnover rate suggests that users are treating stablecoins as 'working capital' rather than holding them for long-term investments. The report also notes that domestic P2P activity accounted for 59.1% of China's crypto economy, which Chainalysis estimates to be at least $176 billion.
Chainalysis's findings come against the backdrop of China's evolving enforcement posture toward tokenized finance. Despite regulations targeting unauthorized yuan-pegged stablecoins and tokenized real-world assets, stablecoin use continues to grow in P2P channels. The report also compares China's crypto behavior with other East Asian markets, noting distinct patterns such as institutional inflows in Hong Kong and heavy decentralized exchange (DEX) usage in Japan.
Looking ahead, the report raises questions about how enforcement will evolve, particularly after February's rules targeting specific categories of stablecoins and tokenized instruments. The next key datapoints to monitor include whether domestic P2P dominance continues to grow and whether stablecoin turnover remains elevated in the post-2026 enforcement environment.