Standard Chartered has initiated coverage of Sky’s SKY token with a price target of $0.325 for the end of 2028, representing a fivefold increase from the $0.065 price cited in a Friday report shared with Cointelegraph.

The bank expects Sky to pass more than five times as much value to token holders by 2028 as adoption of its USDS stablecoin and borrowing capacity expand. The forecast is therefore tied to the platform’s ability to grow both stablecoin use and lending activity, rather than to the token target alone.

Geoff Kendrick, Standard Chartered’s global head of digital assets research, compared Sky, a decentralized finance (DeFi) platform formerly known as MakerDAO, to a “federal bank.” He cited the platform’s stablecoin issuance, governance framework and wholesale interest rate charged to borrowers as the basis for the comparison.

Kendrick wrote that Sky returns value to token holders primarily through staking rewards, while token buybacks account for a smaller share. He added that the forecast implies SKY will broadly keep pace with Ether and outperform Bitcoin through 2028. Standard Chartered projects that Ether will reach $18,000 and Bitcoin $300,000 by the end of that year. The forecast’s key operating reference points are Sky’s USDS adoption, borrowing capacity and the way platform value is distributed between staking rewards and buybacks.

Sky is the third-largest stablecoin issuer, behind Tether and Circle, and the largest issuer of yield-bearing stablecoins. Its yield-bearing sUSDS token had $4.5 billion in total value locked and offered a 3.6% annual percentage yield, according to DeFiLlama.

Source: Cointelegraph