China's P2P Stablecoin Wallets Skyrocket Despite Crypto Crackdown
A new report reveals that the number of wallets used for peer-to-peer stablecoin transactions in China surged 43-fold between the first quarter of 2024 and the second quarter of 2026. This trend indicates a shift in crypto activity from exchange-based trading to direct wallet-to-wallet payments, despite China's restrictive regulatory environment.
According to Chainalysis, wallets used for peer-to-peer stablecoin remittances in China saw a significant increase. From July 2025 to June 2026, there were 18.1 million transfers linked to self-custodied stablecoin holdings worth $104.1 billion. The turnover rate was remarkably high, with stablecoin holdings in China turning over 33.2 times a year, more than three times the global average of 9.3.
Chainalysis estimates that China's crypto economy is worth at least $176 billion, with domestic peer-to-peer activity accounting for 59.1 percent of the total, a 3.5-fold increase from the previous reporting period. This suggests a growing preference for direct transfers over centralized services.
The increase in peer-to-peer activity occurred despite China's strict regulatory stance on crypto trading. In February, Chinese authorities issued new rules targeting unlicensed products involving yuan-linked stablecoins and real-world asset tokenization. However, users are increasingly opting for direct wallet-to-wallet remittance routes.