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China’s P2P stablecoin wallets surge 43x, Korea’s $450B crypto economy: Asia Express
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- DeepHorus
China's peer-to-peer stablecoin activity has exploded despite Beijing's crypto bans. Chainalysis reported that unique wallets sending P2P stablecoin transactions grew 43-fold between the first quarter of 2024 and the second quarter of 2026. Chainalysis tracked $104.1 billion across 18.1 million transfers in the 2026 reporting period.
China's self-custodied stablecoin holdings turned over 33.2 times annually, more than triple the global average of 9.3. Chainalysis said this pattern suggests users treat stablecoins as working capital. China's crypto economy is worth at least $176 billion, with domestic P2P accounting for 59.1% of activity. March 2026 added $4.9 billion, the largest monthly transfer-volume increase.
South Korea is East Asia's largest crypto economy at $449.1 billion. Activity rose 12.3% in the year to June 2026, with retail traders favoring AI-linked tokens. Yet exchange operating profits fell 78% in the first half of 2026.
KoFIU data showed average daily trading volume dropped 44%, market capitalization fell 33%, won-denominated deposits slid 35%, and exchange sales declined 41%. Trading-eligible accounts rose 0.4%. The divergence highlights a shrinking market even as registrations held steady.
In tokenization, Securitize shares jumped 8% after partnering with LG CNS. The companies signed an MOU to develop tokenized assets and digital infrastructure for South Korean financial institutions. South Korea's FSC proposed rules for tokenized stocks, bonds, and funds, effective February 2027.
Singapore drew institutional crypto expansion. Standard Chartered plans digital-asset custody for institutions, covering select cryptocurrencies, stablecoins, and tokenized real-world assets. Independent Reserve launched cross-border fiat and stablecoin payouts and derivatives trading via ReserveX. Payward partnered with Singapore Gulf Bank for crypto settlement.
Asia's crypto markets are diverging: Chinese users rely on P2P stablecoins, Korean exchanges face profit pressure, and Singapore advances regulated infrastructure. If tokenization rules take effect in 2027, Korea could attract more institutional issuance. Chainalysis's data suggests stablecoin utility persists under restrictive policies.
