Chainalysis data shows that the number of unique wallets executing peer-to-peer stablecoin transfers in China multiplied by 43 between Q1 2024 and Q2 2026. During the July 2025-June 2026 window, those wallets moved roughly $104 billion across 18 million transactions, turning over stablecoin balances an average of 33.2 times per year – a turnover rate more than three times the global norm of 9.3. The high velocity suggests users are employing stablecoins as a form of working capital rather than a long-term store of value. Domestic P2P activity accounted for 59.1% of China’s estimated $176 billion crypto economy, a share 3.5 times larger than a year earlier, and March 2026 alone saw a $4.9 billion surge in stablecoin transfers.
South Korea’s Dominant Yet Struggling Crypto Economy
Chainalysis ranks South Korea as the biggest crypto market in East Asia, valuing the ecosystem at $449.1 billion and noting a 12.3% activity increase year-on-year to June 2026. Retail participants have shown a pronounced interest in AI-linked tokens. However, the first half of 2026 delivered a harsh environment for local exchanges: operating profits plunged 78%, daily trading volume fell 44%, market cap declined 33%, and won-denominated deposits dropped 35% compared with the previous six months. Exchange sales also fell 41% despite a marginal 0.4% rise in eligible trading accounts.
Tokenisation Gains Traction in South Korea
Tokenisation platform Securitize saw its shares jump 8% after announcing a memorandum of understanding with LG CNS. The collaboration aims to build tokenised asset solutions and digital-asset infrastructure for Korean financial institutions. The move positions Securitize ahead of South Korea’s upcoming regulatory framework for tokenised securities, slated to take effect in February 2027.
Institutional Custody and Services Expanding in Singapore
Standard Chartered disclosed plans to offer institutional crypto custody in Singapore, covering selected cryptocurrencies, stablecoins and tokenised real-world assets for accredited institutional and corporate clients. The bank highlighted Singapore’s status as a financial and innovation hub as a key factor in its global strategy.
Independent Reserve, a Singapore-licensed exchange, introduced cross-border payment capabilities that let businesses settle invoices in fiat or stablecoins across more than 20 currencies, with USDC and USDT among the digital options. The platform also launched crypto-derivatives trading for sophisticated investors through its ReserveX subsidiary.
Payward, the parent of Kraken, partnered with Singapore Gulf Bank to provide continuous institutional crypto settlement, further cementing Singapore’s role as a regional settlement hub.
Hong Kong Pushes Ahead with Licensing and Institutional Activity
Hong Kong reaffirmed its intention to table an amendment to its crypto licensing bill before the end of 2026, aiming to create a comprehensive regime for trading, custody, advisory and management services. The city leads East Asia in institutional participation, with institutional platforms responsible for 16% of service inflows – nearly three times the regional average – and attracting close to $24 billion in inbound B2B flows. Hong Kong issued its first stablecoin licences in April.
Japan’s Decentralised Exchange Surge and Sanctions
In Japan, decentralized exchange activity now represents almost 35% of service usage, the highest proportion among mature East Asian markets. More than 200% growth in DEX swaps has been recorded since 2022, with the majority of trades ranging between $10 and $1,000. Legislative revisions passed in July incorporated digital assets into the country’s financial-markets framework. Separately, Japanese authorities expanded sanctions against Russia by adding the exchange Garantex to a list of entities tied to the war in Ukraine, aligning with measures already imposed by the US and EU.
Security Incidents Highlight Ongoing Risks
Law enforcement in India arrested four suspects linked to an international tech-support fraud that targeted U.S. seniors through Bitcoin ATMs, resulting in a loss of $440,000 for a single victim. In Thailand, an armed robbery in Bang Lamung forced a foreign resident to transfer crypto worth $820,000, alongside cash and luxury watches, with investigators suspecting the perpetrators may be Chinese nationals.
Why it matters
The data underscores a divergent trajectory across Asian markets: while China’s P2P stablecoin ecosystem expands rapidly despite regulatory pressure, South Korea’s exchange sector faces severe profitability challenges even as the overall market grows. Simultaneously, tokenisation, institutional custody and cross-border payment solutions are gaining footholds in Singapore, Hong Kong and South Korea, signalling maturation of the region’s crypto infrastructure. Regulatory developments—from Hong Kong’s licensing push to Japan’s integration of digital assets—are shaping a more structured environment, yet security incidents remind participants of persistent fraud and theft risks.
