Paxos Accidentally Mints $300 Trillion in PYUSD Stablecoin
Paxos swiftly reversed a minting error that created 300 trillion PYUSD, highlighting ongoing concerns about stablecoin oversight and risk management.
PYUSD
Fact Check
The statement is directly confirmed by two credible and corroborating sources (Bloomberg and a tweet from a Bloomberg reporter). These sources explicitly state that Paxos mistakenly minted $300 trillion in PYUSD and then immediately burned the excess coins. Other provided evidence establishes Paxos as the sole issuer and minter of the PYUSD stablecoin, providing essential context.
- Reference: 1
Summary
Paxos mistakenly minted 300 trillion PYUSD stablecoins on October 16, 2025, due to an internal technical error during an internal transfer. The company promptly burned the excess tokens and restored the correct supply of 300 million PYUSD. The incident has reignited discussions on the reliability of stablecoin procedures and the need for better oversight in the crypto industry.
Terms & Concepts
- PYUSD: A U.S. dollar-pegged stablecoin issued by Paxos in partnership with PayPal, designed to facilitate digital transactions with a stable value.
- Token Burn: The process of permanently removing a specified number of tokens from circulation to maintain control over a token’s supply and value.