Bitcoin yield platform HoneyB has completed a $5 million seed round financing, with a valuation of $30 million

The developer of the Bitcoin yield platform HoneyB, Nectar Group, has completed a $5 million seed round financing, led by Portal Ventures, with participation from Peer Venture Partners, Anchorage Digital Ventures, an unnamed family office, and angel investors. Co-founder and CEO Josh Gordon stated that this round of financing uses a Simple Agreement for Future Equity (SAFE) plus a one-to-one token warrant structure, with a post-investment valuation of $30 million, and none of the investors received board seats or advisory positions.

HoneyB aims to help Bitcoin holders earn yields on their holdings. In its first strategy, users borrow stablecoins using Bitcoin as collateral and then invest them in yield strategies involving U.S. Treasuries, fixed income, credit, gold, volatility, and options. The Bitcoin collateral can be held through on-chain smart contracts or by a tripartite arrangement consisting of borrowers, lenders, and custodians, with Anchorage Digital and BitGo providing custody services. HoneyB has also deployed infrastructure on Ethereum, Sui, Solana, and Arch Network. Gordon stated that the underlying investment products target an annualized return of about 10%, and HoneyB aims to provide users with an annualized return of about 2% to 4% on their Bitcoin holdings after deducting borrowing costs and fees.

The first strategy will use a fund under Simplify Asset Management, which manages approximately $13.5 billion in assets, with Alphaledger responsible for managing and tokenizing the fund, and Amber Capital SPC as the issuer. Gordon named Bitwise, Lombard, Solv, and Sentora as competing platforms, noting that HoneyB's differentiation lies in integrating custody, lending, and investment services on the same platform, allowing institutional partners to offer their products under their own brand. HoneyB plans to launch in the fourth quarter of 2026, with its first product aimed at institutional investors outside the U.S., followed by plans to launch institutional products in the U.S. and retail products expected in the first quarter of 2027. Its business model involves charging a platform fee on deployed funds, and this round of funding will be used for product development, custody and financing integration, legal compliance, and distribution. Nectar was established in October last year and currently has more than 12 employees.