In a surprising technical mishap, Paxos, the blockchain partner of PayPal, inadvertently minted a staggering $300 trillion worth of PYUSD, its stablecoin pegged to the U.S. dollar. The error occurred during an internal transfer process and was immediately flagged by the company’s monitoring systems.
Thanks to swift intervention, the excess tokens were burned within 20 minutes, preventing any potential impact on the broader crypto market. The incident highlights both the efficiency of automated oversight mechanisms and the importance of robust controls for stablecoin issuers.
Industry experts noted that while the mistake was alarming in terms of scale, it underscores the growing sophistication of risk management protocols in the rapidly evolving stablecoin ecosystem. Traders and investors were reassured that no PYUSD holders were affected, and the market remained stable throughout the incident.
Paxos confirmed that a full investigation is underway to ensure that similar errors are prevented in the future, emphasizing the company’s commitment to security, transparency, and market integrity.
