Paxos Accidentally Creates $300 Trillion PYUSD in Stunning Minting Error
Whoops—someone added a few extra zeros.
The $300 Trillion Typo
Paxos just demonstrated how a single coding error can create more digital dollars than the entire global economy. The stablecoin issuer accidentally minted enough PYUSD to buy multiple planets—then had to perform emergency blockchain surgery to undo the damage.
Blockchain's Built-in Safety Net
Unlike traditional banking errors that might take weeks to untangle, Paxos caught the mistake within hours. The immutable ledger actually worked in their favor—every transaction visible, every movement tracked. They froze addresses, reversed transactions, and basically performed a digital do-over.
Stablecoin Stability Test
This wasn't just about the money—it was about trust. The incident tested whether stablecoin protocols can handle catastrophic failures without crashing markets. Turns out the system held, but regulators are definitely taking notes.
Because nothing says 'financial innovation' like accidentally creating more money than exists in the real world. Maybe next time they'll double-check those decimal points before hitting deploy.
When a glitch becomes a headline
The cryptocurrency community reacted with disbelief and sarcasm, questioning how such an error could have passed internal checks. One user asked, “How do you fat-finger 6 digits?” while others joked that Paxos had printed enough to erase global debt.
As humor gave way to concern, industry figures pointed to gaps in quality control. Gnosis Co-Founder Martin Köppelmann commented that it was “not a good look to get the decimals wrong,” while analysts said the mistake underscored the fragility of systems managing programmable money.
The event reignited debate over stablecoin oversight, as regulators push for stricter transparency on issuance and reserves. Similar mistakes have happened before. In 2019, Tether accidentally minted $5 billion, but none on this scale.
PayPal, which partners with Paxos to issue PYUSD, has not commented on the incident. Paxos reiterated that PYUSD remains fully backed 1:1 and that no users or partners were affected. The stablecoin currently has a market capitalization of about $2.6 billion, according to DefiLama.
Despite the quick fix, the episode shows how even experienced players can make costly mistakes, and how, in blockchain finance, a single error can momentarily create more money than exists on Earth.
Also Read: Stablecoins Could be a Risk to Global Finance: EU Chief
