Paxos Corrects 300 Trillion PYUSD Minting Error, Sparks Oversight Debate

Paxos, the issuer of PayPal's [PYUSD stablecoin](https://holder.io/coins//), mistakenly minted 300 trillion PYUSD due to an error adding extra zeros. The mistake was quickly corrected by burning the excess tokens and reissuing 300 million PYUSD.

The error briefly created digital currency exceeding the US money supply by nearly 14 times.
This incident sparked discussions about smart contract precision and stablecoin risk management.

Paxos confirmed the minting error as an internal mistake during a routine transfer, stating no security breach occurred and customer funds remained safe. This event has led to debates on the need for stricter regulatory standards for stablecoin issuance.

Stablecoin Market Trends

Stablecoin market dominance has risen to 8.49% amid market caution following a recent correction.
Dominance spiked near 9.5%, driven by Tether and Circle issuing over $4.5 billion in new stablecoins.
This suggests institutions are preparing liquidity reserves while awaiting market stabilization.
A sustained dominance above 8% reflects continued risk aversion, while a decline below may indicate renewed confidence in crypto assets.