A Chainalysis report reveals that the number of unique wallets sending peer-to-peer (P2P) stablecoin transactions in China surged 43-fold between the first quarter of 2024 and the second quarter of 2026. From July 2025 to June 2026, self-custody stablecoin transfer volume topped $104.1 billion, with users in the country logging 18.1 million individual transactions to move these funds.
These figures do not merely reflect the sheer amount of money moved, but also highlight a shifting pattern in how digital dollars are used on the ground.
Circulating as Daily Working Capital
The turnover velocity of stablecoin holdings in China reached 33.2 times per year, more than triple the global average of 9.3 times annually. Chainalysis concluded that such rapid velocity indicates citizens are using stablecoins as daily working capital rather than idle assets.
Chainalysis estimates China’s total crypto economy is valued at at least $176 billion, with domestic P2P transactions serving as the largest contributor at 59.1% of that overall valuation. The share from self-custody wallets jumped 3.5 times compared to the 2025 period. The peak for domestic stablecoin transfer volume occurred in March 2026, when transactions posted a record monthly increase of $4.9 billion.
Sharp Contrast with South Korea
A starkly contrasting picture is unfolding in South Korea. The country holds the title of East Asia’s largest crypto economy with a valuation reaching $449.1 billion, representing a 12.3% year-over-year increase. However, this burgeoning market size has not guaranteed profitability for trading intermediaries.
Operating profits at South Korea’s local crypto exchanges plunged 78%, accompanied by a 44% drop in daily trading volume. While activity contracts on centralized exchanges in one market, participants in another continue to circulate billions of dollars directly from wallet to wallet.
Reported by Cointelegraph.
Also read: What Is DeFi (Decentralized Finance)?
Also read: Paxos Brings $3 Billion USDG Stablecoin to Arbitrum - Offers 100 Million ARB to Displace USDC
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.
