China’s peer-to-peer stablecoin activity has expanded sharply despite the country’s restrictions on cryptocurrency trading while South Korea has emerged as East Asia’s largest crypto economy, according to blockchain analytics firm, Chainalysis.
The number of unique wallets sending peer-to-peer stablecoin transactions in China rose 43-fold between the first quarter of 2024 and the second quarter of 2026, Chainalysis data showed.
The firm recorded $104.1 billion across 18.1 million transfers involving China’s self-custodied stablecoin holdings during the 12 months to June 2026. Stablecoin holdings turned over 33.2 times annually, more than three times the global average of 9.3, suggesting the assets are being used as working capital.
China’s crypto economy was valued at at least $176 billion with domestic peer-to-peer activity accounting for 59.1% of the total, up 3.5 times its share in the previous reporting period.
South Korea ranked as East Asia’s largest crypto economy with $449.1 billion in activity, an increase of 12.3% over the year to June 2026. However, operating profits at South Korean crypto exchanges fell 78% in the first half of the year as trading activity, market valuations, and customer deposits declined.
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Hong Kong stood out for institutional crypto activity with institutional platforms accounting for 16% of service inflows, nearly three times the share in any neighbouring market. The city also recorded almost $24 billion in inbound business-to-business flows.
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In Japan, decentralised exchanges accounted for nearly 35% of crypto service activity, the highest proportion among mature East Asian markets. Decentralised exchange activity in the country has increased by more than 200% since 2022, Chainalysis said.
The figures highlight diverging crypto markets across East Asia, from China’s growing reliance on direct wallet-to-wallet stablecoin transfers to South Korea’s large trading economy and Hong Kong’s institutional activity.
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