The number of unique wallets sending peer-to-peer (P2P) stablecoin transactions in China has expanded dramatically, growing 43-fold between the first quarter of 2024 and the second quarter of 2026, according to comprehensive new data from blockchain analytics firm Chainalysis.
Despite enduring some of the world’s most restrictive government policies targeting digital assets, self-custodied stablecoin holdings in China continue to flourish underground and through peer networks. Chainalysis recorded a staggering $104.1 billion across 18.1 million individual transfers involving China’s self-custodied stablecoin holdings during the 2026 reporting period, which spanned from July 2025 to June 2026.
The data reveals that these stablecoin holdings turned over 33.2 times per year, a velocity more than three times higher than the global average of 9.3. Chainalysis noted that this high turnover pattern is consistent with users treating stablecoins primarily as working capital and transactional currency rather than long-term speculative investments.
Furthermore, Chainalysis’s latest annual study estimates that China’s broader crypto economy is worth at least $176 billion. Domestic P2P activity accounted for 59.1% of that total, representing a massive shift and climbing to 3.5 times its share compared to the 2025 reporting period. Monthly figures highlighted within the report showed that China’s domestic stablecoin transfer volume added $4.9 billion in March 2026 alone, marking the largest single monthly increase observed during the tracking period.
South Korea Leads East Asia’s Crypto Economy Despite 78% Drop in Exchange Profits
Moving across the region, Chainalysis ranked South Korea as East Asia’s largest overall crypto economy, boasting a massive valuation of $449.1 billion. Overall activity within the country grew by 12.3% in the year leading up to June 2026 compared to the previous year, with retail traders showing a pronounced and ongoing preference for artificial intelligence-linked cryptographic tokens.
However, the rosy macro-figures mask a challenging financial reality for the nation’s domestic digital asset exchanges. The first half of 2026 proved particularly punishing for South Korean platforms, which watched their operating profits plummet by 78% as overall trading activity, market valuations, and customer deposits experienced a sharp downturn.
Data from the Korea Financial Intelligence Unit (KoFIU) underscored the severity of the contraction, revealing that average daily trading volume at domestic virtual asset exchanges fell 44% compared to the prior six months. Concurrently, overall market capitalization dropped by 33%, while won-denominated deposits declined by 35%. Exchange sales also contracted by 41% over the same timeframe, even as the total number of accounts eligible to trade ticked up slightly by 0.4%.
Securitize Stock Jumps 8% Amid South Korea Tokenization Push
Capitalizing on shifting regulatory horizons, shares of tokenization platform Securitize rallied sharply by 8% following the company’s announcement of a strategic partnership with South Korean technology giant LG CNS.
Securitize and LG CNS formally signed a memorandum of understanding aimed at developing tokenized assets and advanced digital asset infrastructure specifically tailored for South Korean financial institutions.
The partnership positions Securitize to secure an early and advantageous foothold in South Korea just as the nation prepares to implement a comprehensive new regulatory framework for tokenized securities. Just weeks prior, South Korea’s Financial Services Commission proposed formal rules governing the issuance and circulation of tokenized stocks, bonds, funds, and other financial instruments, with the statutory framework scheduled to take full effect in February 2027.
Standard Chartered Plans Institutional Crypto Custody in Singapore
In Singapore, London-headquartered multinational banking and financial services giant Standard Chartered has announced ambitious plans to launch dedicated digital asset custody services catering specifically to institutional clients.
Under the new initiative, the firm will custody select cryptocurrencies, stablecoins, and tokenized real-world assets for corporate clients and institutional investors who qualify as accredited market participants.
Standard Chartered emphasized that Singapore’s established reputation and continuing role as a leading global financial and innovation hub form an indispensable cornerstone of its broader international expansion strategy.
Independent Reserve Adds Cross-Border Payments While Subsidiary Launches Derivatives
Continuing the momentum in Southeast Asia’s premier financial center, Singapore-licensed crypto exchange Independent Reserve has introduced new cross-border payment tools designed to empower businesses to execute seamless fiat and stablecoin payouts. Corporate accounts can now be funded using either Singapore dollars or US dollars to make direct disbursements to suppliers or employees across more than 20 distinct currencies, with USD Coin and Tether functioning as core transaction options.
In tandem with the payments rollout, the exchange has launched dedicated crypto derivatives trading tailored for sophisticated investors through its newly operational subsidiary, ReserveX.
Meanwhile, Payward, the parent company of major global crypto exchange Kraken, has forged a strategic partnership with Singapore Gulf Bank to facilitate round-the-clock, frictionless institutional crypto settlement services.
Hong Kong Officials Double Down on End-2026 Deadline for Crypto Licensing Bill
Shifting focus to Hong Kong, the local government has reaffirmed its unwavering commitment to submitting a comprehensive amendment bill before the end of 2026. The upcoming legislation will establish formal licensing regimes covering digital asset trading, custody, advisory, and management services as part of an overarching regulatory consolidation.
Christopher Hui, Secretary for Financial Services and the Treasury of Hong Kong, addressed a policy briefing, confirming that the administration intends to submit the amendment bill within the calendar year to cement a robust regulatory framework for all virtual asset activities.
Furthermore, Hong Kong emerged as a standout jurisdiction in the Chainalysis Geography of Cryptocurrency report regarding institutional engagement. Institutional platforms accounted for 16% of all local service inflows—nearly triple the proportion observed in any regional neighbor. The city processed nearly $24 billion in inbound business-to-business transaction flows, buoyed by the historic issuance of its first stablecoin licenses earlier in April.
Japanese DEX Usage Rises 200% Since 2022 as Country Adds Garantex to Russia Sanctions
In Japan, decentralized exchanges (DEXs) have captured nearly 35% of all local service activity, representing the highest concentration among mature East Asian markets. Chainalysis highlighted that 65.7% of all DEX swaps in the country fell between $10 and $1,000, with overall decentralized exchange activity surging by more than 200% since 2022. This retail and decentralized growth coincides with Japanese lawmakers passing legislative revisions in July that fully integrate digital assets into the nation’s traditional financial-markets framework.
In regulatory enforcement news, the Japanese government officially added Russian cryptocurrency exchange Garantex to its expanding roster of sanctions against Russia in response to the ongoing war in Ukraine.
Japanese authorities added 33 organizations and nine individuals with ties to Russia to an asset-freeze list that explicitly restricts payments and capital transactions with targeted entities. The action was outlined in a joint statement released by Japan’s Ministry of Foreign Affairs, Ministry of Finance, and Ministry of Economy, Trade and Industry. Garantex has previously faced severe financial restrictions and blacklisting by the United States and the European Union for allegedly facilitating sanctions evasion by Russian actors.
India-Based Scam Targets US Seniors via Bitcoin ATMs
Amid broader regional developments, international law enforcement agencies continue to grapple with cross-border cybercrime tied to digital assets. India’s Central Bureau of Investigation (CBI) recently arrested four individuals in connection with an alleged international tech-support fraud and extortion ring that specifically targeted vulnerable citizens in the United States.
The criminal syndicate utilized fraudulent computer pop-up warnings displaying toll-free numbers masquerading as Microsoft support. Victims who dialed the numbers were falsely informed that their personal computers had been compromised or linked to illicit activities such as child exploitation, under the guise of extorting substantial sums of money. Court and investigative records highlighted one notable case where a single resident in Florida was defrauded of $440,000 by the perpetrators.
Meatspace Attack Forces Victim to Transfer $820K in Crypto in Thailand
Physical security threats involving digital wealth also surfaced in Thailand, where three armed assailants carried out a violent home invasion in Bang Lamung.
The intruders forced a foreign resident at gunpoint to transfer cryptocurrency valued at approximately $820,000. In addition to the digital asset transfers, the robbers looted physical cash and three luxury Rolex wristwatches before fleeing the scene. Local law enforcement authorities have stated that they suspect the perpetrators may be foreign nationals, with ongoing investigations directed at tracking the movement of the stolen crypto assets across international blockchains.
