Lessons from the $300 Trillion PYUSD Minting Mishap

Paxos accidentally minted 300 trillion PayPal USD (PYUSD) tokens.

That's equivalent to 2x global GDP.

This incident highlights a critical vulnerability in centralized stablecoins: unchecked admin control.

A single issuer's keys can create astronomical sums without pre-mint safeguards or real-time reserve verification.

Unlike decentralized assets like Bitcoin, where supply is hard-capped, stablecoin issuers hold "god-mode" controls, raising questions about trust and stability.

What’s the fix?

1. Multi-signature approvals for minting/burning
2. On-chain proof-of-reserves for transparency
3. Stronger regulatory frameworks