Paxos Mints 300 Trillion PYUSD By Error – Swift Correction Sparks Stablecoin Debate
Paxos, the issuer of PayPal's PYUSD stablecoin, inadvertently minted 300 trillion tokens due to a decimal error—adding six extra zeros to a 300 million PYUSD transaction. The mistake, briefly exceeding the entire US money supply by 14 times, was corrected within hours as Paxos burned the excess and reissued the intended amount. The incident drew widespread attention, highlighting the fragility of algorithmic precision in large-scale financial systems.
Social media erupted with a mix of alarm and dark humor, as traders imagined the consequences of such a sum—enough to buy nearly every public company globally. While Paxos confirmed no funds were compromised, the episode reignited debates about stablecoin oversight and systemic risks in crypto-based finance.
