China's P2P Stablecoin Wallets Surge 43x Despite Crypto Restrictions

China's peer-to-peer (P2P) stablecoin wallets saw an unprecedented surge, growing 43 times between the first quarter of 2024 and the second quarter of 2026, despite the country's strict crypto restrictions. This dramatic increase was highlighted in a recent report by Chainalysis, which recorded $104.1 billion across 18.1 million transfers involving China’s self-custodied stablecoin holdings during the 2026 reporting period. The data also revealed that stablecoin holdings in China turned over 33.2 times per year, significantly higher than the global average of 9.3, suggesting that users are treating stablecoins as working capital.

The report estimated China’s crypto economy to be worth at least $176 billion, with domestic P2P activity accounting for 59.1% of the total. This marked a substantial increase from the previous period, where P2P activity only accounted for 17.1% of the total. The growth in stablecoin transfer volume peaked in March 2026, adding $4.9 billion, the largest monthly increase recorded. This surge occurred despite China's reinforced restrictions on crypto trading, including new rules targeting unauthorized yuan-pegged stablecoins and tokenized real-world assets.

China’s P2P-heavy market contrasts with its East Asian neighbors. South Korea, ranked as the region’s largest crypto economy at $449.1 billion, saw a 12.3% growth in activity, driven by retail traders’ preference for AI-linked tokens. Meanwhile, Hong Kong stood out for its institutional activity, with institutional platforms accounting for 16% of service inflows. The city also issued its first stablecoin licenses in April, reflecting its growing role in the crypto space. In Japan, decentralized exchanges (DEXs) accounted for nearly 35% of service activity, with 65.7% of DEX swaps occurring between $10 and $1,000. Japanese lawmakers recently passed revisions to bring digital assets under the country’s financial-markets framework.