PayPal's $300T Stablecoin Blunder Overshadows PYUSD Growth
PayPal has faced a significant mishap in its digital asset division, while experiencing mixed signals from investors and analysts regarding its stock market performance. Meanwhile, the company's PYUSD stablecoin has witnessed remarkable growth.
In a major blunder, PayPal's Paxos subsidiary accidentally minted approximately $300 trillion in PYUSD tokens, which were later destroyed. This incident highlights the risks associated with digital asset management within the company.
PayPal insiders, including Chief Accounting Officer Chris Natali, have sold over 15,000 shares in the past 90 days. Additionally, large institutional investors such as Shaker Investments LLC and Carnegie Investment Counsel have reduced their stakes in the company, indicating a notable sell-off in the stock market.
Despite these sell-offs, PayPal's board has approved an additional $15 billion share repurchase program, suggesting management's belief that the stock market is undervalued. In the second quarter of 2025 alone, PayPal spent $1.5 billion to buy back 22 million shares, with total buybacks over the past year amounting to $6 billion.
Analysts remain divided in their assessments of PayPal, with some expressing optimism and others skepticism. Weiss Ratings maintains a 'Hold' recommendation for PayPal stock market, reflecting the uncertainty among analysts. Notably, Patton Fund Management Inc. reduced its PayPal holdings by 93.4% in Q2 2025, retaining only 3,370 shares, while the Alaska Department of Revenue sold 6,695 PayPal shares.
On a positive note, PayPal's PYUSD stablecoin has seen explosive growth, with its circulating supply surpassing $2.6 billion, a 125.5% increase since August.
PayPal's recent quarterly results have been solid, but the company faces challenges in maintaining investor confidence following the accidental minting of PYUSD tokens and mixed signals from analysts and institutional investors. Despite this, PayPal's stablecoin continues to grow at a remarkable pace.
