‘DeFi’s federal bank’: Standard Chartered sees SKY token rising fivefold by end-2028

Sky Protocol, originally MakerDAO, is a decentralized finance (DeFi) platform built on Ethereum, renowned for its USDS stablecoin pegged 1:1 to the U.S. dollar. USDS controls a market capitalization over $6 billion and makes up more than 2% of the stablecoin market. The protocol's governance token, SKY, commands a $1.38 billion market capitalization, ranking 62nd among cryptocurrencies.

On September 11, Standard Chartered, a 172-year-old bank, began covering SKY with a price target of $0.325 by 2028. Geoff Kendrick, the bank's global head of digital assets research, likened Sky Protocol to a federal bank due to its stablecoin issuance, governance framework, and wholesale lending of assets. SKY also holds the distinction of being the largest issuer of yield-bearing stablecoins.

Users can stake USDS for staking rewards and deploy the sUSDS token across the DeFi ecosystem, earning 3.6% APY on sUSDS, per DeFiLlama. SKY token holders primarily benefit from staking rewards, though token buybacks also contribute to returns. At present, SKY trades at $0.065, representing a potential 400% upside from the bank's $0.325 target.

Standard Chartered forecasts Bitcoin and Ethereum reaching $300,000 and $18,000, respectively, by the end of 2028, suggesting SKY will trail Ether but outpace Bitcoin throughout the prediction period.