Paxos Accidentally Mints $300 Trillion in PYUSD Stablecoins, Sparks Industry Concerns
Paxos, the issuer of PayPal's PYUSD stablecoin, inadvertently created $300 trillion worth of tokens in a technical blunder—a sum exceeding the global economy's total value. The error, attributed to an internal transfer mishap, was swiftly corrected with the excess tokens burned within an hour. Market observers interpreted the incident as a 'fat finger' mistake, though Paxos confirmed no security breach occurred.
The episode has reignited debates over stablecoin safeguards. Unlike traditional finance, these digital assets often operate without proof-of-reserve requirements during minting. While blockchain-native solutions could enforce stricter controls, issuers have shown reluctance to adopt such measures. The PYUSD incident underscores systemic vulnerabilities in an industry where trust hinges on technical precision.
