Nectar Group raises $5 million seed round for HoneyB Bitcoin yield platform

Nectar Group, the developer of Bitcoin income platform HoneyB, has raised a $5 million seed round at a $30 million post-money valuation, The Block reported on October 20.

Portal Ventures led the round, which was structured as a SAFE with a one-for-one token warrant. Peer Venture Partners, Anchorage Digital Ventures, an unnamed family office and angel investors also participated.

HoneyB plans to launch an institutional product for investors outside the US in the fourth quarter of 2026, with a retail product expected in the first quarter of 2027. A US institutional offering will follow at a later date.

Borrowing against Bitcoin to fund income strategies

The platform lets users borrow stablecoins against their Bitcoin and deploy the proceeds into income strategies covering US Treasuries, fixed income, credit, gold, volatility and options. Collateral can be held in an onchain smart contract or in a three-party arrangement among borrower, lender and custodian, with Anchorage Digital and BitGo serving custodial clients.

The first underlying product targets annual returns of roughly 10%, while HoneyB aims to deliver about 2% to 4% a year on users’ Bitcoin after borrowing costs and fees. Co-founder and CEO Josh Gordon said returns are not guaranteed.

Fund access comes through Simplify Asset Management, a registered investment adviser with about $13.5 billion in assets under management, while Alphaledger manages and tokenizes the fund. HoneyB has built infrastructure on Ethereum, Sui, Solana and Arch Network.

Gordon described HoneyB as an orchestration layer between Bitcoin and capital markets and named Bitwise, Lombard, Solv and Sentora as competitors. The company plans to use the funds for product development, custody and financing integrations, compliance and distribution.