The bank expects Sky to pass five times as much value to token holders by 2028 as USDS adoption and borrowing capacity continue to expand.
Standard Chartered initiated coverage of Sky’s SKY token with a $0.325 price target for the end of 2028, up fivefold from the $0.065 price cited in a Friday report shared with Cointelegraph.
Geoff Kendrick, the bank’s global head of digital assets research, likened Sky, a decentralized finance (DeFi) platform formerly known as MakerDAO, to a “federal bank” because it issues stablecoins, creates a governance framework and charges borrowers a wholesale interest rate.
Kendrick wrote that Sky returns value to token holders primarily through staking rewards, with token buybacks accounting for a smaller share.
Sky ranks as the third-largest stablecoin issuer behind Tether and Circle and the largest issuer of yield-bearing stablecoins.
Kendrick added that the forecast implies that SKY will broadly keep pace with Ether and outperform Bitcoin through 2028. The bank forecasts Ether at $18,000 and Bitcoin at $300,000 by the end of 2028.
Sky’s yield-bearing sUSDS token had $4.5 billion in total value locked and offered a 3.6% annual percentage yield, according to DeFiLlama.
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