On Wednesday, stablecoin issuer Paxos accidentally minted $300 trillion worth of PayPal Holdings Inc.’s PYUSD stablecoin on Ethereum – a “fat finger” error on the blockchain that far exceeded the total U.S. dollar circulating supply of $2.4 trillion.
The issuer explained that a technical glitch caused the PYUSD supply to rapidly and unintentionally expand, which was quickly identified and resolved. Paxos emphasized that it was not a security breach and assured that all customer funds remain safe.
Still, the fact that a technical issue led to such an enormous amount of stablecoin creation without the requisite collateral has raised eyebrows.
PYUSD ranked as the world’s seventh-largest stablecoin, with a market value of $2.64 billion. Each token is fully backed by highly liquid, high-quality reserve assets to maintain its 1:1 peg with the U.S. dollar.
You need to login in order to Like
Leave a comment