PayPal’s crypto partner accidentally mints $300 trillion in stablecoins #
Paxos, the blockchain infrastructure firm that issues PayPal’s PYUSD stablecoin, mistakenly minted $300 trillion worth of tokens due to a technical error on its Ethereum smart contract, according to Finextra. The glitch, which occurred during a routine update, temporarily flooded the blockchain with invalid tokens before being swiftly reversed
The company clarified that the incident was confined to a test environment and did not impact circulating supply, customer balances, or the stability of PYUSD. All excess tokens were subsequently burned, and Paxos confirmed that its internal safeguards functioned as intended to prevent real-world exposure
While the error was quickly contained, the episode reignited debate around smart-contract oversight and the risks of automated minting systems used in stablecoin management. Industry observers say the event underscores the need for robust testing frameworks and on-chain governance standards as stablecoins continue to integrate into mainstream finance.