Paxos Accidentally Mints $300 Trillion in PayPal's PYUSD Stablecoin

On October 15, 2025, Paxos, the blockchain partner of PayPal, mistakenly minted an astonishing $300 trillion worth of its stablecoin, PYUSD. This error, attributed to an internal technical glitch during an internal transfer, was identified and rectified within approximately 20 minutes. Paxos quickly burned the excess tokens, ensuring that no customer funds were at risk. The incident was visible on Etherscan, an analytics platform for the Ethereum blockchain, where market watchers noted the unprecedented minting event.

Paxos Accidently Minted $300 Trillion PYUSDCNBCNew York PostPaxos Blames Internal Error for $300 Trillion PYUSD Stablecoin MintPaxos error leads to accidental minting of $300 trillion PYUSD

The minting error occurred at 3:12 PM EST, when Paxos inadvertently added six extra zeros to a transaction intended to mint $300 million in PYUSD. This resulted in a figure that exceeded the entire global GDP, estimated at around $117 trillion. Paxos confirmed that the incident was not due to a security breach, stating, "This was an internal technical error. There is no security breach. Customer funds are safe." The company assured users that it had addressed the root cause of the error.

Paxos Blames Internal Error for $300 Trillion PYUSD Stablecoin MintPayPal crypto partner accidentally mints stablecoins worth double the world’s total GDP — Paxos undersells $300 trillion incident as an ‘internal technical error’Paxos Accidently Minted $300 Trillion PYUSDPaxos Accidentally Mints 300 Trillion PYUSDPaxos error leads to accidental minting of $300 trillion PYUSD

The incident sparked immediate concern within the cryptocurrency community, highlighting the operational risks associated with stablecoin issuers. Industry experts pointed out that while stablecoins like PYUSD are designed to be fully backed by reserves, the ability to mint tokens without on-chain proof of reserves raises questions about trust and transparency. Amanda Fischer from Better Markets emphasized the need for regulatory caution, stating, "If someone with a fat finger error can increase the total supply… then perhaps regulators should proceed cautiously."

Paxos’ $300 Trillion PYUSD Minting Error Sparks Stablecoin Trust Concerns

This is not the first time a significant minting error has occurred in the stablecoin space. In 2019, Tether mistakenly minted $5 billion worth of its USDT stablecoin, which was quickly corrected. Such incidents underscore the importance of robust operational controls in the rapidly evolving digital finance landscape.

New York Post

Paxos reiterated its commitment to customer safety, stating that the incident did not affect the redemption mechanisms or the 1:1 dollar peg of PYUSD. The company is currently pursuing a national trust charter under the GENIUS Act, which would allow it to operate as a federally chartered institution across the U.S. This incident may prompt further scrutiny of Paxos' technical safeguards as regulators assess the implications of such operational errors.

Paxos Blames Internal Error for $300 Trillion PYUSD Stablecoin Mint

• “This was an internal technical error. There is no security breach. Customer funds are safe. We have addressed the root cause,” — Paxos

CNBC

• “Certainly not a good look to get the decimals wrong.” — Martin Köppelmann, Gnosis Founder

Paxos Blames Internal Error for $300 Trillion PYUSD Stablecoin Mint

• “If someone with a fat finger error can increase the total supply… then perhaps regulators should proceed cautiously,” — Amanda Fischer, Better Markets

Paxos Blames Internal Error for $300 Trillion PYUSD Stablecoin Mint

The $300 trillion minting error serves as a stark reminder of the operational challenges faced by stablecoin issuers. As the market for stablecoins continues to expand, the need for verifiable reserve systems and automated safeguards becomes increasingly critical. The incident has reignited discussions about the balance between innovation and regulatory oversight in the cryptocurrency space, emphasizing the importance of maintaining trust in digital financial systems.

Paxos’ $300 Trillion PYUSD Minting Error Sparks Stablecoin Trust Concerns