Standard Chartered Puts 5X Price Target on DeFi 'Federal Bank' Sky

Standard Chartered has given Sky's SKY token a price target of $0.325 by the end of 2028, which represents a five-fold increase from its current level.

This forecast is part of Standard Chartered's initiation of coverage on Sky, formerly known as MakerDAO, and refers to it as 'DeFi's federal bank.'

Geoff Kendrick, Standard Chartered's global head of digital assets research, made this comparison due to Sky's role in issuing USDS and DAI, setting governance rules, and lending capital to ecosystem participants at wholesale rates.

The most significant aspect of Standard Chartered's thesis is not the price target itself but rather the substantial potential revenue lever presented by Sky's unused borrowing capacity.

Sky's three primary capital-allocation agents have borrowed about $5.9 billion in USDS from the protocol and currently have combined borrowing limits of roughly $17.5 billion, nearly three times existing usage.