Overview
- Standard Chartered initiated formal coverage of the SKY governance token on Friday, September 11, 2026 and published a year-end 2028 price target of $0.325, about five times the token's reference price of roughly $0.065.
- Sky Protocol is the rebranded successor to MakerDAO and issues USDS, a dollar-pegged stablecoin backed by overcollateralized on-chain reserves, while users can stake USDS to receive sUSDS, a yield-bearing token that can be used across DeFi.
- On-chain data show Sky has become a major issuer of yield-bearing stablecoins with sUSDS carrying roughly $4.5–$4.59 billion in TVL, USDS market cap north of $6 billion, and its principal agents having borrowed about $5.9 billion and deployed over $5.5 billion into yield strategies with institutional partners.
- Standard Chartered's valuation path assumes a $2 trillion stablecoin market by 2028 and models SKY returns from protocol surplus flowing to holders via staking rewards and buybacks, with the note saying SKY could track closer to Ethereum and outperform Bitcoin through 2028.
- The bank and others warn that intensified regulatory scrutiny — especially the risk that regulators like the SEC treat yield-bearing stablecoins as securities or money-market products — could limit distribution, change governance choices about surplus allocation, and materially reduce SKY's upside.