Standard Chartered has initiated coverage of Sky's SKY token with a price target of $0.325 by the end of 2028, representing roughly a fivefold increase from the $0.065 level cited in the bank's report.
The forecast adds to a broader institutional outlook for the digital-asset market, with Standard Chartered also projecting Bitcoin at $300,000 and Ethereum at $18,000 by the end of 2028.
Sky, formerly known as MakerDAO, has increasingly positioned itself as a major player in decentralized finance through its USDS stablecoin, savings products and lending infrastructure.
Standard Chartered Sets $0.325 SKY Target
Geoff Kendrick, Standard Chartered's global head of digital assets research, compared Sky's role in DeFi to that of a "federal bank", highlighting its combination of stablecoin issuance, governance and lending activity.
According to the bank's thesis, Sky can continue increasing the economic value flowing to SKY holders as adoption of its stablecoin ecosystem and borrowing capacity expands.
The $0.325 target would represent a substantial increase from the approximately $0.065 price used as the starting point in the report.
However, the target is a forecast rather than a guaranteed price outcome, and the bank's valuation depends on Sky's ability to expand adoption and generate sustainable economic activity.
Sky's Stablecoin Business Drives the Thesis
Sky's investment case is closely connected to the growth of its stablecoin ecosystem.
The protocol issues USDS, while its savings products allow users to earn yield on USDS through the Sky ecosystem.
Current onchain data shows approximately $4.68 billion supplied to the Ethereum-based sUSDS savings product, with an APY around 3.60%. (DeFiLlama)
Sky's broader protocol economics also include lending fees and other revenue sources.
That activity is important to SKY because the token's value-accrual mechanisms include staking rewards and protocol-funded buybacks.
Sky's own documentation says staking rewards are funded through treasury buybacks, with repurchased SKY either burned or redistributed to staked holders according to governance parameters. (Sky)
SKY Offers More Than Governance
SKY is the governance token of the Sky Protocol, but its role extends beyond voting.
According to Sky, users can stake SKY to access rewards and use staked positions as collateral to borrow USDS.
The protocol currently displays a variable SKY staking reward rate, determined through governance. (Sky)
This creates a broader economic model around the token:
Sky activity → protocol revenue → buybacks → staking rewards and token value accrual
If USDS adoption and borrowing activity increase, the model could potentially generate more economic value for SKY holders.
Bitcoin Remains Standard Chartered's Major Crypto Benchmark
While the SKY forecast is attracting attention, Standard Chartered's broader digital-asset outlook remains particularly significant for Bitcoin investors.
The bank forecasts Bitcoin at $300,000 by the end of 2028, compared with its $18,000 target for Ethereum.
That places Bitcoin at the center of the institution's long-term crypto outlook even as the bank sees opportunities across DeFi and other digital assets.
The forecasts also illustrate how institutional research increasingly evaluates crypto assets according to different economic models rather than treating the market as a single category.
Bitcoin remains primarily a scarce monetary asset, while Ethereum is tied to network activity and staking, and Sky's SKY token is linked to DeFi governance and protocol value accrual.
Sky Could Benefit From Stablecoin Growth
Stablecoin adoption is becoming an increasingly important part of the digital-asset market.
Stablecoins are being used for trading, payments, settlement, DeFi liquidity and onchain financial applications.
Sky is positioned within this trend through USDS and its associated savings and lending infrastructure.
The protocol's current ecosystem also includes stUSDS, a risk-capital token designed to support liquidity for SKY-backed borrowing and SKY staking. (Sky Protocol Docs)
If stablecoin adoption continues expanding, demand for the infrastructure supporting these assets could also increase.
The Fivefold Target Comes With Risks
Despite the bullish forecast, SKY's path toward $0.325 is not guaranteed.
Several factors could affect the outcome:
Stablecoin adoption may grow more slowly than expected.
DeFi borrowing demand could weaken.
Changes in interest rates could affect protocol revenue.
Governance decisions could alter buyback and staking parameters.
Competition among stablecoin and DeFi protocols could increase.
Broader crypto-market conditions could pressure SKY and other digital assets.
The token's relatively small price compared with Bitcoin or Ethereum should also not be interpreted as meaning it is inherently cheaper. Token supply and market capitalization are more important when comparing valuations.
Institutional Crypto Forecasts Expand Beyond Bitcoin
Standard Chartered's SKY forecast reflects a broader change in institutional crypto research.
Bitcoin remains the dominant institutional digital asset, but banks and professional investors are increasingly analyzing stablecoins, DeFi protocols, tokenized assets and crypto infrastructure as separate investment themes.
That could become increasingly important as traditional financial institutions move deeper into onchain markets.
For Bitcoin investors, the development is relevant because growth across these sectors can contribute to broader crypto liquidity, infrastructure adoption and institutional participation.
What to Watch Next
The key indicators for Sky and the wider crypto market include:
The most important question will be whether Sky can translate growing stablecoin and lending activity into sustainable value for SKY holders.
Conclusion
Standard Chartered has initiated coverage of Sky's SKY token with a $0.325 price target for the end of 2028, implying roughly fivefold upside from the $0.065 level cited in its report.
The forecast is based on expectations that USDS adoption, borrowing capacity and Sky's ability to return economic value to token holders will continue expanding.
At the same time, Standard Chartered's $300,000 Bitcoin forecast for 2028 keeps BTC firmly at the center of its long-term digital-asset outlook.
For the broader crypto market, the report highlights an increasingly diverse institutional thesis: Bitcoin as a scarce monetary asset, Ethereum as programmable financial infrastructure, and DeFi protocols such as Sky as emerging onchain financial businesses.
If stablecoin adoption and DeFi activity continue to expand, Sky could become an increasingly important part of the institutional crypto landscape.
