Standard Chartered initiated coverage of Sky’s SKY token with a $0.325 price target for the end of 2028, according to a Friday report shared with Cointelegraph. The target is about five times higher than the $0.065 price cited in the report, and the bank said the forecast reflects Sky’s role in decentralized finance and its tokenholder value model. According to Cointelegraph, Geoff Kendrick, the bank’s global head of digital assets research, compared Sky, a decentralized finance 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 said Sky returns value to token holders mainly through staking rewards, while token buybacks make up a smaller portion of that value. Sky is the third-largest stablecoin issuer behind Tether and Circle and the largest issuer of yield-bearing stablecoins.
Kendrick added that the forecast implies SKY will broadly keep pace with Ether and outperform Bitcoin through 2028. Standard Chartered expects Ether to reach $18,000 and Bitcoin to reach $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.