China stablecoin wallet activity surges despite crypto curbs, Chainalysis says

Traders Union
All News
Crypto
China stablecoin wallet surge

Highlights

Chainalysis reports China recorded $104.1 billion across 18.1 million self-custodied stablecoin transfers from July 2025 to June 2026, with wallet activity up 43-fold since early 2024.
Stablecoin holdings in China turned over 33.2 times per year, over triple the global average, as peer-to-peer activity surged to 59.1% of the $176 billion crypto economy amid tightened restrictions.
South Korea's crypto economy reached $449.1 billion with 12.3% growth, Hong Kong saw near $24 billion B2B inflows and first stablecoin licenses, while Japan's DEX activity rose over 200% since 2022 following July regulatory amendments.

Chainalysis report tracks rapid growth in China

As reported by Cointelegraph, citing Chainalysis, the number of unique wallets sending peer-to-peer stablecoin transactions in China grew 43-fold between the first quarter of 2024 and the second quarter of 2026.

The blockchain analytics firm recorded $104.1 billion across 18.1 million transfers involving China’s self-custodied stablecoin holdings during its 2026 reporting period, which runs from July 2025 to June 2026. Stablecoin holdings turned over 33.2 times per year, more than three times the global average of 9.3, a pattern the company says suggests users are treating stablecoins as working capital.

Chainalysis estimates China’s crypto economy is worth at least $176 billion. Domestic peer-to-peer activity accounts for 59.1% of the total, 3.5 times its share in the prior reporting period, even as authorities reinforce long-standing restrictions with February rules targeting unauthorized yuan-pegged stablecoins and tokenized real-world assets.

East Asia markets diverge on crypto adoption

China’s peer-to-peer-heavy market differs from other major East Asian jurisdictions tracked by Chainalysis. South Korea ranks as the region’s largest crypto economy at $449.1 billion, with activity up 12.3% from the previous period and retail traders showing strong interest in AI-linked tokens.

Hong Kong stands out for institutional participation. Institutional platforms account for 16% of service inflows, nearly three times the share in any regional neighbor, while the city receives almost $24 billion in inbound business-to-business flows. Hong Kong also issues its first stablecoin licenses in April.

In Japan, decentralized exchanges account for nearly 35% of service activity, the highest share among mature East Asian markets. Chainalysis says 65.7% of DEX swaps are valued between $10 and $1,000, and DEX activity has risen by more than 200% since 2022. Japanese lawmakers also pass revisions in July that bring digital assets under the country’s financial-markets framework.

In our earlier coverage of China’s rural bank overhaul, we explained how Beijing’s policy-driven consolidation led to a record 670 bank closures in 2025 as authorities pushed to reshape and strengthen the sector. We also noted that weaker asset quality and profitability at smaller lenders, alongside broader economic headwinds, were key drivers behind the accelerated restructuring and tighter oversight.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.