Paxos Draws NYDFS Attention As $300 Trillion Minting Error Exposes Stablecoin Risks

The New York Department of Financial Services (NYDFS) confirmed today that Paxos, the issuer of PayPal USD (PYUSD), accidentally minted $300 trillion worth of unbacked stablecoins on October 15, 2025. The regulator added that it is in contact with both Paxos and PayPal regarding the incident. The event, which momentarily expanded PYUSD’s supply beyond the size of the entire global economy, has triggered fresh scrutiny of the operational and systemic risks underpinning the stablecoin sector. Paxos’ $300 Trillion Minting Error Exposes Major Risks in the Stablecoin Industry According to on-chain data, the incident began as a routine transfer of $300 million between Paxos-controlled wallets source: https://beincrypto.com/paxos-pyusd-minting-error-stablecoin/