Catenaa, Thursday, September 17, 2026- Standard Chartered has initiated coverage of decentralized finance platform Sky, forecasting its SKY token could climb about fivefold to $0.325 by the end of 2028 as its stablecoin and lending businesses expand.
SKY was trading near $0.065 when the bank published its analysis.
Sky, formerly known as MakerDAO, operates the USDS stablecoin and a decentralized lending ecosystem.
Geoffrey Kendrick, Standard Chartered’s global head of digital assets research, compared Sky’s role within decentralized finance to that of a central bank.
Sky issues USDS, establishes governance rules and provides wholesale liquidity to affiliated capital-allocation platforms.
Its three main agents, Spark, Grove and Obex, have borrowed a combined $5.9 billion in USDS, according to Standard Chartered.
Those platforms deploy the funds into lending, crypto markets and real-world assets while paying Sky a base interest rate currently around 3.8%.
Spark concentrates on crypto lending through platforms including Aave and Morpho.
Grove allocates capital into real-world assets, including products linked to BlackRock, Janus Henderson and Apollo.
Obex is designed to bring specialist capital managers into the Sky ecosystem.
Sky also earns income from USDC held through Coinbase in its peg stability module and from older DAI-related lending vaults.
Standard Chartered expects growth in outstanding USDS supply to increase revenue available for SKY holders through staking rewards and token buybacks.
Kendrick estimates the value distributed to SKY holders could increase fivefold by the end of 2028.
If other factors remain broadly unchanged, he expects token prices to rise by a similar amount.
The forecast would put SKY’s expected performance roughly in line with ether and ahead of bitcoin over the same period, according to the bank.
The outlook depends on two stages of growth.
First, Sky could distribute a larger share of existing revenue after increasing its financial reserve.
Sky currently holds about $90 million in aggregate backstop capital.
Standard Chartered estimates that reserve could reach $150 million within about eight months.
If it also reaches 1.5% of outstanding USDS supply, more income could be directed toward staking rewards and token repurchases.
The second stage would depend on increased borrowing across Spark, Grove and Obex.
The three platforms have combined borrowing limits of about $17.5 billion, almost three times their current borrowings.
Standard Chartered estimates that fuller use of those limits could increase income by another two to three times if interest margins remain stable.
The bank’s forecast also assumes SKY’s staking yield remains near its current 4.2%.
Kendrick views SKY primarily as a staking-yield token, with buybacks playing a smaller role in its valuation.
The broader forecast rests partly on expected growth in stablecoins.
Standard Chartered continues to project that the global stablecoin market could reach $2 trillion by the end of 2028.
However, the bank warned that slower adoption of yield-bearing stablecoins could weaken the outlook.
Sky therefore faces a familiar DeFi challenge: its valuation depends not only on protocol growth but also on whether users continue shifting capital toward onchain dollar products that generate yield.
For Standard Chartered, that expansion could make Sky one of DeFi’s most important financial infrastructure platforms and provide the basis for a fivefold rise in SKY over the next two years.
