Paxos

Paxos, the infrastructure provider for PayPal’s PYUSD stablecoin, mistakenly minted $300 trillion worth of PYUSD due to a “technical error.” The error, detected and rectified quickly, involved burning the excess tokens. While customer funds remained safe, the incident highlights critical questions about safeguards and operational protocols in stablecoin issuance. The event underscores the role of custodians and the importance of swift error correction in maintaining trust. This comes as stablecoins gain traction, increasing scrutiny of their resilience and regulatory compliance.