The figure has surged 43-fold in two years. The number of unique wallets sending peer-to-peer (P2P) stablecoin transactions in China climbed sharply between the first quarter of 2024 and the second quarter of 2026, according to a Chainalysis report.
Between July 2025 and June 2026, users transferred $104.1 billion. This capital flowed across 18.1 million separate transactions involving self-custodied stablecoin holdings. Domestic P2P activity now accounts for 59.1% of total activity, marking a 3.5-fold increase from its share in the 2025 reporting cycle.
Stablecoins in mainland China changed hands an average of 33.2 times per year. This figure is more than triple the global average turnover of just 9.3 times. The high velocity indicates users are utilizing crypto assets as daily working capital rather than passive savings.
Transactions Flow Despite Regulations
Chainalysis estimates China’s total crypto economy is currently valued at least at $176 billion. Market growth has persisted even after Beijing issued strict regulations this past February. The new rules targeted unauthorized yuan-pegged stablecoins and prohibited tokenized real-world assets.
China’s situation adds to a diverse picture across East Asia. South Korea currently stands as the largest crypto economy in East Asia at $449.1 billion, supported by 12.3% growth.
Across the border, Hong Kong has taken an institutional path. Exchanges and platforms catering to institutions accounted for 16% of the city’s total service inflows - a proportion nearly triple that of its neighbors. Hong Kong also recorded nearly $24 billion in inflows for business-to-business (B2B) transactions.
Japan Leans on Decentralized Exchanges
The Japanese market displayed a different pattern through intermediary-free asset trading. Transactions on decentralized exchanges (DEX) accounted for nearly 35% of national crypto service activity. This level of DEX dominance ranks highest among all mature East Asian markets. Regional DEX activity itself has surged by more than 200% since 2022.
The figures from the report highlight the adaptability of crypto users. While policymakers introduce new barriers, capital flows continue to find their natural course - filtering through grassroots wallet transactions in China, entering decentralized platforms in Japan, or moving across corporate desks in Hong Kong.
Source: Cointelegraph.
Also read: What Is DeFi (Decentralized Finance)?
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Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
