The number of unique wallets conducting peer-to-peer stablecoin transactions in China grew 43-fold between the first quarter of 2024 and the second quarter of 2026, according to blockchain analytics firm Chainalysis.
During the 2026 reporting period, which ran from July 2025 to June 2026, Chainalysis recorded $104.1 billion across 18.1 million transfers involving China's self-custodied stablecoin holdings. Stablecoin holdings turned over 33.2 times per year, more than three times the global average of 9.3, suggesting users are treating stablecoins as working capital rather than long-term holdings.
Chainalysis estimated China's overall crypto economy is worth at least $176 billion. Domestic peer-to-peer activity accounted for 59.1% of this total, representing a significant increase from its 3.5 times lower share in the previous reporting period. China's domestic stablecoin transfer volume reached $4.9 billion in March 2026, marking the largest monthly increase documented.
The growth trajectory continues despite China's longstanding restrictions on cryptocurrency trading. In February, authorities reinforced these restrictions with new rules targeting unauthorized yuan-pegged stablecoins and tokenized real-world assets.
Regional Contrasts in East Asia
China's expansion contrasts sharply with other major East Asian crypto markets. South Korea ranks as the region's largest crypto economy at $449.1 billion, with activity growing 12.3% in the latest period. Retail traders in South Korea showed strong interest in artificial intelligence-linked tokens.
Hong Kong distinguished itself through institutional activity, with institutional platforms accounting for 16% of service inflows—nearly three times the regional average. The city received almost $24 billion in inbound business-to-business flows. Hong Kong issued its first stablecoin licenses in April.
Japan's crypto market showed a distinct preference for decentralized exchanges, which accounted for nearly 35% of service activity—the highest share among mature East Asian markets. Approximately 65.7% of decentralized exchange swaps ranged between $10 and $1,000, with decentralized exchange activity rising more than 200% since 2022. Japanese lawmakers passed digital asset revisions in July that bring crypto assets under the country's financial-markets framework.
