In a gloomy turn for the blockchain industry, Paxos, a blockchain infrastructure platform, has secured regulatory approval to issue stablecoins in Singapore. This development comes amidst increasing global scrutiny on the crypto market, raising concerns about the potential risks and volatility associated with digital currencies.

Paxos has chosen DBS, a leading financial services group in Asia, as its banking partner in the region. This partnership could potentially strengthen the foothold of digital currencies in traditional banking, a move that could further blur the lines between the conventional financial system and the emerging digital economy.

While this may seem like a positive development for the blockchain industry, it is crucial to remember that the regulatory landscape is still uncertain. The integration of digital currencies into traditional banking could potentially expose the financial system to new risks, given the inherent volatility and lack of regulation in the crypto market.