Standard Chartered Bank predicts that SKY tokens will rise fivefold by the end of 2028

Standard Chartered Bank: SKY tokens are expected to grow five-fold by the end of 2028

Standard Chartered Bank has officially launched a coverage study on Sky Protocol's SKY tokens and predicts that their value may increase fivefold by the end of 2028. In a report, the bank compared DeFi lending platform Sky to "DeFi's Federal Reserve", a view that quickly attracted the attention of heavy stablecoins traders in Southeast Asia.

This forecast is important for the region because the USDS, the dollar stablecoin at the core of the Sky model, is competing for capital from proceeds flowing through exchanges such as Indodax, Tokocrypto and Coins.ph. A large global bank has set specific valuation targets for governance tokens, providing trading desks in the ASEAN region with a new institutional benchmark to weigh against.

Summary of Core Points

• Standard Chartered Bank predicts that the value of SKY tokens will increase fivefold.
• The forecast time horizon is the end of 2028.
• The title of the report uses the term "DeFi's Fed" to describe Sky's role.

Standard Chartered Bank is optimistic about SKY's five-fold increase to the end of 2028

According to The Block, Standard Chartered Bank has launched a coverage study on SKY, with a target price of US$0.325 at the end of 2028, while the benchmark price in the report is approximately US$0.065. The outlook was proposed by Geoffrey Kendrick, head of global digital asset research at Standard Chartered Bank, with a report date of September 11, 2026.

Standard Chartered Bank reported SKY 2028 year-end target price: US$0.325

Source: The Block, September 11, 2026, reported on Geoffrey Kendrick's Standard Chartered Bank forecast. The target price is five times the benchmark reported at approximately $0.065, rather than the achieved return.

The model assumes that the SKY pledge yield remains around 4.2%; slowing growth in income-based stablecoins is the main risk identified in the report.

What does SKY's five-fold forecast mean

"Five-fold" refers to five-fold growth relative to the starting level, rather than a guaranteed return on investment. According to The Block's interpretation of the report, Kendrick expects the value of the gains earned by SKY holders to increase fivefold by the end of 2028, which will support a corresponding proportional increase in token prices if other factors remain constant.

This prediction is based on assumptions rather than deterministic facts. It assumes that SKY pledge yields remain near the 4.2% level stated in the report, and the report points out that lower-than-expected growth of income-based stablecoins is the biggest risk to this argument.

The forecast time span at the end of 2028

The three-year forecast cycle leaves sufficient room for changes in assumptions. The current trading price of SKY is close to US$0.0611, and its market value is approximately US$1.43 billion. This is a real-time snapshot of data that is below the benchmark of approximately $0.065 reported and should not be confused or replaced with a benchmark price. The current broad cryptocurrency market sentiment scores 56 in the Fear and Greed Index, which is classified as "greedy", but this indicator is context-dependent and is not specifically targeted at SKY.

The SKY token is a successor to MakerDAO's MKR token, launched during the 2024 rebranding period, and is different from the USDS, sUSDS and stUSDS assets in the ecosystem. Part of the agreed surplus funds will be repurchased SKY in the market through the Smart Burn Engine, and the repurchased tokens will be destroyed or reallocated to pledgers based on governance parameters.

Interpretation of the "DeFi's Fed" Framework

The phrase "DeFi's Fed" is an analogy used to describe Sky's functions and is figurative rather than a legal definition. It refers to Sky issuing USDS, setting governance rules and lending at wholesale rates, while independent agents allocate borrowed funds to earn spreads.

This metaphor emphasizes functional rather than regulatory attributes. It does not mean having a banking license, government support, deposit insurance or monetary authority status. This distinction is particularly important in Southeast Asia, which is closely watching how institutions such as DBS respond to their legal risks in the courts of Singapore, where the gap between banks and bank-like agreements is far from being as simple as academic discussions.

According to The Block, at the reporting snapshot, Spark, Grove and Obex had total USDS borrowing of $5.9 billion, while the combined borrowing limits were $17.5 billion, and they paid a benchmark interest rate of 3.8%. Kendrick predicts that if borrowing reaches these caps and interest spreads remain constant, revenue will increase further by two to three times.

Agency comprehensive USDS borrowing amount and ceiling

US$5.9 billion/US$17.5 billion

Source: The Block, September 11, 2026. At the reporting snapshot, Spark, Grove and Obex's total USDS borrowing was $5.9 billion, while the combined borrowing cap was $17.5 billion. These caps are not the actual amount borrowed;Kendrick's forecast of two to three times revenue growth depends on whether borrowing reaches these caps and whether interest spreads remain constant.

Aggregate reserve capital currently stands at approximately US$90 million and, according to Kendrick's estimates, could reach a level of US$150 million in approximately eight months. In his model, reaching this level and 1.5% of the outstanding USDS would double the amount of money available for pledge rewards and buybacks. The Sky Savings Rate itself is variable, determined by governance and funded from the total agreement surplus, and the independent agent is not a subsidiary of Sky Protocol.

Information needed to evaluate SKY predictions

There are still several inputs that need to be verified before conducting a more in-depth analysis. The original Standard Chartered research report is not yet available; the data cited here is based on The Block's reporting on it rather than official documents released by the bank.

Benchmarks and assumptions to be verified

Key items to be confirmed include the exact reference price, numerical targets, and the yield and borrowing assumptions that support the model. Sky.money currently shows an annualized SKY pledge rate of 4.60%, higher than the 4.2% assumed in the forecast, which reminds us that real-time yields are variable and may move in directions that are not conducive to this argument.

In addition, there is currently no verified evidence that SKY's recent price movements are driven by bank reports; the positive movements of the token are a rolling snapshot rather than confirmed reports-driven market. For ASEAN traders, the rational attitude should be caution rather than blind confidence, which is also the attitude taken by regional trading desks when faced with macro signals such as institutions entering regulated crypto custody services and changes in market liquidity at the Ministry of Finance. Forecasts from global banks are only a data point on platforms from Jakarta to Manila, rather than the expected results of Southeast Asia's 700 million people weighing dollar gains.