Standard Chartered sets 5x price target for SKY, citing DeFi bank model

Standard Chartered's global head of digital assets research, Geoffrey Kendrick, has initiated coverage on Sky (formerly MakerDAO) with a price target of $0.325 for the SKY token by the end of 2028, representing a fivefold increase from its current price. Kendrick characterizes Sky as a 'DeFi federal bank,' where the protocol issues USDS and DAI, while agents like Spark, Grove, and Obex act as commercial banks that borrow USDS to generate yield. The valuation model relies on a two-stage growth projection: first, the accumulation of reserve capital to trigger higher distribution ratios for SKY holders, and second, the expansion of agent borrowing toward the $17.5 billion limit. The report estimates that these factors could increase the value distributed to SKY holders by four to six times, assuming a stable staking yield of approximately 4.2%.