Paxos Fat-Finger Error: $300 Trillion PYUSD Briefly Exists

Paxos's Trillion-Dollar Typo

Imagine accidentally adding a few extra zeros to a transaction. Paxos, the issuer of PayPal's PYUSD stablecoin, did just that, but on a scale that's almost hard to fathom. They briefly created $300 trillion worth of PYUSD before quickly rectifying the error.

The Mint and the Burn

Blockchain records confirm that Paxos minted this massive amount in error. The company identified the mistake and swiftly burned the tokens, effectively deleting them from existence. The correct amount of $300 million was then minted.

Echoes of the Past

This isn't the first time a stablecoin issuer has faced a similar issue. Past incidents include:

• Tether (2019): Mistakenly issued about $5 billion in USDT and later burned the excess.
• BlockFi (2021): Accidentally credited users with large sums of Bitcoin instead of a promotional stablecoin.
• DeversiFi (2022): A glitch caused a $23.7 million Ethereum gas payout.

Stablecoins: A Growing Force

Despite these occasional hiccups, stablecoins are becoming increasingly important within the crypto ecosystem. The total market cap of the stablecoin sector is around $306 billion as of mid-October 2025, which is a 47% year-to-date increase. Tether's USDT dominates with approximately 59% of the market share, followed by Circle's USDC.

PayPal USD (PYUSD), while smaller, boasts a market cap and token supply of $2.32 billion. Its trading price remains tightly anchored near $0.9997.

Key Takeaways

• Stablecoin issuance, despite being managed by regulated companies, is still susceptible to human error.
• Issuers can correct errors by burning mistakenly created tokens.
• Stablecoins continue to experience growth and adoption within the cryptocurrency market.
• Incidents such as these highlight the need for robust security and audit systems.