Peer-to-peer stablecoin wallets in China grew 43-fold between Q1 2024 and Q2 2026, even as regulators tightened restrictions on unauthorized crypto. A new Chainalysis report shows $104.1 billion moved through self-custodied transfers over the past year.
China restricts crypto trading, but its residents keep sending stablecoins to each other in growing numbers. The Chainalysis East Asia Crypto Adoption Report, released on October 5, found that the number of unique wallets sending peer-to-peer stablecoin transactions in the country grew 43-fold between Q1 2024 and Q2 2026.
The numbers behind the surge
Chainalysis found that $104.1 billion moved through approximately 18.1 million self-custodied stablecoin transfers from July 2025 to June 2026. Self-custodied means users held their own keys, with no exchange sitting in the middle.
Stablecoin turnover in China reached an annualized rate of 33.2 times, compared with a global average of 9.3 times. Chainalysis reads that pattern as a sign stablecoins are increasingly functioning as working capital rather than savings — spent, settled, and passed along.
Domestic P2P activity now accounts for 59.1% of China's estimated crypto economy, which the report puts at at least $176 billion. That share represents a 3.5-fold increase compared with previous periods.
Growth during a crackdown
In February 2026, Chinese authorities reinforced restrictions on unauthorized stablecoins and tokenized assets. The following month, domestic stablecoin transfers posted a $4.9 billion monthly volume spike, according to Chainalysis, even as local regulators amplified bans on crypto trading.
The report frames this as a shift in user behavior rather than a temporary blip. Chinese users appear to be favoring decentralized, direct wallet-to-wallet transfers over centralized platforms.
What it means for regulators
Restrictions aimed at platforms work best when activity runs through platforms. Once users move to self-custody and direct transfers, there are fewer chokepoints left to press on, and the Chainalysis data suggests a meaningful share of Chinese stablecoin users has already made that move.
A 43-fold increase in active wallets during a period of reinforced bans says something about how much users value dollar-pegged tokens in a tightly controlled environment. Stablecoins circulating 33.2 times a year look less like speculative positions and more like operating cash for whatever commerce users are conducting.
Source: Crypto Briefing
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