Standard Chartered Says SKY Token Will 5X to $0.325 by 2028

Standard Chartered began coverage of Sky's SKY governance token with a long-term target of $0.325 by the end of 2028, a roughly fivefold increase from levels the bank used as its starting point. The projection — published by Geoff Kendrick, the bank's global head of digital assets research — also includes nearer-term targets of $0.080 for 2026 and $0.180 for 2027. The note used a starting price of $0.065; CoinGecko showed SKY trading near $0.06 on the day of the report, with a market capitalization around $1.4 billion.

Kendrick frames Sky as similar to a "federal bank," arguing the protocol issues yield-bearing stablecoins, governs system-wide parameters and earns interest by lending to on-chain counterparties. He identifies three primary revenue sources: net interest income from agent borrowing, yield from a peg stability module that holds USDC, and crypto-backed vaults. The bank emphasizes Sky's agent model — decentralised capital allocators that borrow USDS to deploy into various yield strategies — as the engine for ecosystem growth, noting agents have borrowed $5.9 billion since the model began in September 2024.

Central to the valuation case is expansion of USDS outstanding. The note highlights differing measures of supply: the USDS contract on Ethereum shows 6.62 billion, Sky reported USDS supply of $10.04 billion in June (and $11.14 billion in May), and Sky's own Q4 2025 guidance targeted $20.6 billion of USDS for 2026. Kendrick flags the main downside risk as slower-than-expected growth in yield-bearing stablecoin adoption. DefiLlama data cited in the note places USDS third among stablecoins by supply (around $6.66 billion), behind Tether and USDC, and identifies Sky as the largest issuer of yield-bearing stablecoins.

Sky already transfers value to SKY holders through staking rewards and buybacks. DeFiLlama figures in the note show the protocol collected $27.2 million in fees over the prior 30 days and $13.45 million in revenue, of which $3.36 million went to holders; annualized metrics in the note put fees near $400.7 million and revenue near $214.4 million. Sky reported $5.58 billion in total value locked and Q2 gross protocol revenue of $107.35 million with net protocol revenue of $40.09 million. Kendrick expects value pass-through to holders to at least double over the next 12 months and to rise fivefold by end-2028 if the protocol and USDS continue to scale.

The SKY forecast is part of a broader set of bullish house views in the note that also project ether at $18,000 and bitcoin at $300,000 by end-2028 (with 2026 marks of $4,000 and $100,000 respectively). The research memo notes Sky rebranded from MakerDAO in 2024 and includes Standard Chartered's standard disclaimer that the publication is not a client-specific recommendation or solicitation.