China P2P stablecoin wallets grew 43x despite crypto restrictions: Chainalysis

Unique wallets used for peer‑to‑peer stablecoin transfers in China multiplied 43 times between the first quarter of 2024 and the second quarter of 2026, according to blockchain analytics firm Chainalysis. The surge reflects a rapid shift toward direct wallet‑to‑wallet transactions as users navigate the country’s tight crypto restrictions.

China has banned crypto exchanges, ICOs and mining since 2021, and the government continues to crack down on overseas platforms that serve Chinese users. The policy has pushed traders and remittance senders to look for workarounds that avoid regulated channels. Stablecoins, especially US‑dollar‑pegged tokens, have become a convenient medium because they can be moved quickly and retain value across borders. As Chinese authorities tighten control over centralized services, peer‑to‑peer networks that operate on public blockchains have grown more attractive.

Chainalysis data shows that the number of distinct wallets involved in these P2P stablecoin swaps rose from a few thousand in early 2024 to well over a hundred thousand by mid‑2026. The volume of transactions also climbed, with daily transfers exceeding $1 billion in the latest quarter. Industry observers say the growth signals a maturing underground ecosystem that can bypass official financial monitoring. The People's Bank of China has warned that stablecoins could undermine monetary policy, but its enforcement tools are less effective against decentralized wallets.

Analysts expect the trend to continue as long as Chinese users need a low‑cost, borderless way to move money. Regulators may respond with tighter blockchain surveillance or new legislation targeting stablecoin issuers. For now, the expanding network of wallet users shows how digital assets adapt to policy pressure, reshaping how Chinese residents conduct cross‑border payments and hedge against domestic financial controls.