CoinDesk Podcast Network Paxos Accidentally Minted $300T of PayPal's Stablecoin | CoinDesk Daily
Oct 16, 2025
A staggering $300 trillion of PayPal's PYUSD stablecoin was accidentally minted by Paxos, igniting major concerns over collateral and stability. The discussion dives into the implications of such a minting error, emphasizing the need for transparency in stablecoin issuance. Additionally, Coinbase's new listings program and its potential impact on rival assets signals a shift in the crypto landscape. Brad Garlinghouse advocates for better access to Federal Reserve master accounts for crypto firms, highlighting the need for integration in the industry.
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Safety Claimed Despite Transparency Worries
- Paxos said the event was not a security breach and assured customer funds remained safe.
- Yet the mistake raised concerns about transparency and collateralization for stablecoins.
Massive Minting Reveals Collateral Risk
- Paxos mistakenly minted $300 trillion of PYUSD and then immediately burned the excess tokens.
- The incident showed how massive amounts of stablecoin can be created without visible collateral checks.
PYUSD's Large Market Cap Context
- PYUSD sits among the world's largest stablecoins with a market cap over $2.6 billion as of this morning.
- The token's scale made the accidental minting more notable given its real-world dollar peg.