Standard Chartered calls Sky a 'DeFi federal bank' and forecasts fivefold token rise by 2028
Standard Chartered backs Sky as a DeFi central bank
Standard Chartered Bank has started coverage of the DeFi platform Sky, formerly known as MakerDAO. The bank calls Sky “DeFi’s federal bank” because it issues stablecoins, sets governance rules and charges wholesale interest rates to borrowers. In a report, the bank forecasts that Sky’s SKY token could rise fivefold to about $0.325 by the end of 2028, up from roughly $0.065 today.
Key numbers
- Current SKY price: ~ $0.065
- Forecasted price by 2028: $0.325
- Sky’s three main agents (Spark, Grove, Obex) have borrowed $5.9 billion in USDS stablecoin.
- Base interest rate paid to Sky: 3.8%
- Staking yield for SKY holders: 4.2%
- Reserve buffer: $90 million now, could reach $150 million in about eight months.
- Borrowing limits for agents: $17.5 billion, nearly three times current borrowings.
What the report says
Geoffrey Kendrick, global head of digital assets research at Standard Chartered, wrote that Sky’s income comes from USDS borrowing, a “peg stability module” that swaps USDS for USDC, and older DAI lending vaults. He expects growth in the USDS stablecoin business and a larger share of income to be passed to token holders through staking rewards and buybacks. This increase in value passed to holders is projected to drive the fivefold price rise.
Remaining uncertainties
The main risk noted is that growth in yield‑bearing stablecoins could be slower than expected. If that happens, the projected increase in SKY price may not materialize.
Why it matters
Sky’s model resembles a central bank for decentralized finance: it issues stablecoins (USDS and DAI), sets rules for borrowing agents, and lends at wholesale rates. If the ecosystem expands as forecast, token holders could receive higher staking rewards and benefit from buybacks, potentially increasing the token’s value.
What to watch next
Investors and observers will likely monitor the growth of USDS borrowing, the expansion of Sky’s reserve buffer, and the utilization of the agents’ borrowing limits. Changes in these areas will affect the income available for staking rewards and buybacks.
