China’s P2P Stablecoin Transactions Surge 43-Fold Despite Restrictions

Despite China’s strict crypto restrictions, peer-to-peer (P2P) stablecoin transactions have surged dramatically. According to the Chainalysis East Asia Crypto Adoption Report released on October 5, 2026, the number of unique wallets involved in P2P stablecoin transactions in China grew 43-fold between Q1 2024 and Q2 2026.

Chainalysis found that $104.1 billion moved through approximately 18.1 million self-custodied stablecoin transfers from July 2025 to June 2026. These transactions indicate that users are holding their own keys, bypassing centralized exchanges. Stablecoin turnover in China reached an annualized rate of 33.2 times, significantly higher than the global average of 9.3 times.

The report suggests that stablecoins are increasingly being used as working capital rather than savings. Domestic P2P activity now accounts for 59.1% of China’s estimated crypto economy, valued at at least $176 billion, marking a 3.5-fold increase compared to previous periods.

Interestingly, the growth in stablecoin transfers occurred during a period of reinforced restrictions. In February 2026, Chinese authorities tightened restrictions on unauthorized stablecoins and tokenized assets. The following month, domestic stablecoin transfers saw a $4.9 billion monthly volume spike, indicating a shift in user behavior toward decentralized, direct wallet-to-wallet transfers.

The Chainalysis report also highlights the broader East Asia picture. South Korea emerged as the leader of East Asia’s crypto economy, valued at approximately $1.2 trillion. Meanwhile, Hong Kong’s market is shaped by institutional inflows.

The data suggests that as users move to self-custody and direct transfers, regulators face fewer chokepoints to control. The 43-fold increase in active wallets during a period of reinforced bans underscores the value users place on dollar-pegged tokens in a tightly controlled environment.