TheBlock
Nectar Group, the developer of Bitcoin income platform HoneyB, raised $5 million in seed funding at a $30 million post-money valuation. Portal Ventures led the round, joined by Peer Venture Partners, Anchorage Digital Ventures, an unnamed family office and angel investors. The financing used a SAFE with a one-for-one token warrant.
HoneyB plans to let Bitcoin holders borrow stablecoins against their BTC, then deploy those stablecoins across strategies involving U.S. Treasuries, fixed income, credit, gold, volatility and options. The collateral can be held through an onchain smart contract or a three-party arrangement involving the borrower, lender and custodian. Anchorage Digital and BitGo serve custodial clients, while the platform has infrastructure across Ethereum, Sui, Solana and Arch Network.
Why it matters
Bitcoin is a large asset class, but direct access to institutional income products remains limited. HoneyB's approach uses stablecoins as the bridge between BTC collateral and traditional fixed-income markets, while bringing custody, borrowing and investment services into one platform.
The first strategy will use a diversified portfolio managed by Simplify Asset Management, a registered investment adviser managing about $13.5 billion. Alphaledger will manage and tokenize the fund, while Amber Capital SPC will issue the investment product. HoneyB also plans to let institutional partners offer the products under their own brands.
Market impact
The underlying investment product targets about 10% annual returns, while HoneyB aims to deliver roughly 2% to 4% annual returns on users' Bitcoin holdings after borrowing costs and fees. Actual results will depend on strategy performance, borrowing costs and loan-to-value ratios, and returns are not guaranteed.
HoneyB plans to launch in the fourth quarter of 2026 for institutional investors outside the U.S., with business verification required. U.S. institutional products and a retail offering are planned for later stages.
Frequently asked questions
-
How does HoneyB plan to generate income from Bitcoin holdings?
HoneyB plans to let users borrow stablecoins against their BTC and invest those stablecoins in strategies involving Treasuries, fixed income, credit, gold, volatility and options.
-
What return does HoneyB target for users?
HoneyB targets annual returns of about 2% to 4% on users' Bitcoin holdings after borrowing costs and fees. Returns depend on strategy performance, borrowing costs and loan-to-value ratios and are not guaranteed.
-
Who led Nectar Group's $5 million seed round?
Portal Ventures led the $5 million seed round. Peer Venture Partners, Anchorage Digital Ventures, an unnamed family office and angel investors also participated.
-
When does HoneyB plan to launch?
HoneyB plans to launch its first product in the fourth quarter of 2026 for institutional investors outside the U.S. A retail product is expected in the first quarter of 2027.
-
Which firms support HoneyB's first planned investment product?
Simplify Asset Management will manage the diversified portfolio, Alphaledger will manage and tokenize the fund, and Amber Capital SPC will issue the investment product.
CoinTelegraph
Crypto Rank News
Crypto News
CryptoSlate
WuBlockchain