Standard Chartered initiated coverage of Sky's SKY token with a $0.325 price target for end-2028, projecting fivefold growth as USDS adoption and borrowing expand.
Standard Chartered has initiated coverage of Sky's native token (SKY), setting a price target of $0.325 by the end of 2028, according to a report shared on Friday. The bank's forecast represents a fivefold increase from the $0.065 price cited at the time of publication.
Geoff Kendrick, Standard Chartered's global head of digital assets research, compared Sky to a "federal bank," pointing to its role issuing stablecoins, maintaining a governance framework, and charging borrowers a wholesale interest rate. Sky, a decentralized finance (DeFi) platform, was previously known as MakerDAO.
How Sky Returns Value to Token Holders
Kendrick wrote that Sky distributes value to SKY token holders primarily through staking rewards, with token buybacks making up a smaller portion of that return. He said the bank's price target assumes that USDS adoption and borrowing capacity will continue to grow through 2028, driving the projected gains.
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Sky ranks as the third-largest stablecoin issuer globally, behind Tether (USDT) and Circle (USDC), and is the largest issuer of yield-bearing stablecoins. Its sUSDS token had $4.5 billion in total value locked as of the report and was offering a 3.6% annual percentage yield.
SKY Expected To Outpace Bitcoin Through 2028
Kendrick noted that the SKY price target implies the token will broadly keep pace with Ethereum (ETH) and outperform Bitcoin (BTC) over the same period. Standard Chartered separately forecasts ETH at $18,000 and BTC at $300,000 by the end of 2028.
The bank's coverage initiation places Sky alongside other DeFi protocols receiving attention from traditional financial institutions as stablecoin adoption grows. Sky's position as the largest yield-bearing stablecoin issuer has drawn particular interest given rising demand for on-chain yield products.
The $0.325 target gives SKY a concrete benchmark against which investors can track the protocol's progress as USDS circulation and borrowing activity develop over the next two years.
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