Stablecoin Issuer Paxos Accidentally Mints $300 Trillion PYUSD, Corrects Mistake Minutes Later
Stablecoin issuer Paxos revealed that it mistakenly minted PayPal’s $300 trillion PYUSD stablecoin on Wednesday, only to reverse the mistake minutes later by burning the excess tokens. This incident highlights the potential risks and fragilities associated with automated systems handling large-scale transactions in the cryptocurrency ecosystem.
According to blockchain records visible on Etherscan, the mistake occurred when Paxos accidentally added six extra zeros during minting. Within minutes, the company destroyed the falsely issued $300 trillion PYUSD and instead re-minted the correct amount of $300 million. This swift correction demonstrates the level of control stablecoin issuers have in intervening to correct errors, such as returning or destroying tokens created accidentally.
Precedents of Minting Mishaps in the Crypto Industry
Such mistakes are not uncommon in the crypto space. In the past, token transfers sent to the wrong address have often been irreversible. However, stablecoin issuers have more flexibility to rectify errors. For instance, in 2019, Tether mistakenly issued about $5 billion in USDT and later burned the excess. Similarly, in May 2021, BlockFi accidentally credited users with huge amounts of Bitcoin instead of a promotional stablecoin, leading to complicated reversals.
In another notable incident, a DeversiFi upgrade bug triggered a $23.7 million Ethereum gas payout in December 2022, which developers largely recouped with community support. These incidents underscore the importance of vigilance and robustness in the design and operation of cryptocurrency systems to prevent and mitigate such errors.
The Growing Influence of Stablecoins on the Crypto Ecosystem
As of mid-October 2025, the market capitalization of the stablecoin sector stood at approximately $306.18 billion, marking a significant increase of about 47% year to date. This growth is largely driven by major players such as Tether’s USDT, which holds around 59% market share, and Circle’s USDC. PayPal USD (PYUSD), although smaller, attracts considerable attention with a market capitalization of approximately $2.32 billion as of October 2025, representing its token supply of $2.32 billion, with trading prices firmly anchored near $0.9997.
The increasing influence of stablecoins on the crypto ecosystem is a trend worth noting. Stablecoins like PYUSD play a crucial role in providing a stable store of value and medium of exchange within the volatile cryptocurrency market. Their growth and adoption reflect the evolving needs and preferences of users within the crypto community.
For more information on this incident and the broader context of stablecoin development, visit https://cryptonews.com/news/paxos-accidentally-mints-300-trillion-paypal-stablecoin-pyusd/
