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Sky Protocol, earlier known as MakerDAO, is a decentralized finance (DeFi) project built on Ethereum.

The crypto project is best known for its USDS stablecoin. Pegged 1:1 to the U.S. dollar, USDS attempts to keep its value the same as that of the dollar.

As per the onchain analytics platform DeFiLlama, USDS has a market cap of more than $6 billion and accounts for over 2% of the total stablecoin market.

Sky Protocol's governance token, SKY, gives holders the right to vote on the protocol's future. With a market cap of $1.38 billion, SKY is the 62nd largest cryptocurrency.

Related: Explained: What is a stablecoin?

On Sep. 11, Standard Chartered initiated coverage of the SKY token with a price target of $0.325 by the end of 2028.

The 172-year-old bank's global head of digital assets research, Geoff Kendrick, compared the Sky Protocol to a "federal bank" as the crypto project issues stablecoins, has a governance framework, and lends assets at a wholesale interest rate. In fact, Sky is also the largest issuer of yield-bearing stablecoins.

Here is how it works.

Sky lets users stake the USDS stablecoin in exchange for the sUSDS token. Not only does the user earn the staking rewards on their USDS holding, they can also deploy the sUSDS token across the DeFi ecosystem.

As per DeFiLlama, sUSDS has a total value locked of $4.59 billion and offers an annual percentage yield (APY) of 3.6%.

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The SKY token holders primarily rely on staking rewards for returns, though token buybacks also generate returns, Kendrick said.

Kendrick mentioned $0.065 as SKY's current price. It means his 2028 target of $0.325 represents an upside of 400%.

Standard Chartered sees Bitcoin (BTC) and Ethereum (ETH) hitting $300,000 and $18,000 by the end of 2028.

As per the analyst, the latest prediction implies that SKY will keep pace with Ether but outperform Bitcoin through 2028.

Related: Treasury Secretary Bessent issues stern warning ahead of Senate vote

This story was originally published by TheStreet on Sep 11, 2026, where it first appeared in the MARKETS section. Add TheStreet as a Preferred Source by clicking here.