BTC collateral income: Honeybee secures 5 million financing, 2%-4% annualized

According to Woofun AI, HoneyB, a platform that focuses on using Bitcoin to generate revenue, has completed a $5 million seed round, and its parent company Nectar Group has used this to establish an early market position in the Bitcoin interest-bearing sector.

After the funding was completed, HoneyB's valuation was set at $30 million. The core business model of the project is to obtain stablecoins by using BTC as collateral, and then use these stablecoins to invest in various financial products, thereby bringing users 2% to 4% annualized income.

Structurally, this profit logic relies on the spread between the high return on the underlying asset and the cost of borrowing. The expected annualized return on basic investment products is about 10%, and HoneyB's goal is to convert the remaining profit margin into actual income for users after deducting borrowing costs and various processing fees.

It is worth noting that the actual level of return is not fixed, but rather fluctuates dynamically due to factors such as investment performance, borrowing costs, and asset collateral ratios. This model essentially introduces leveraged arbitrage strategies in traditional finance into the on-chain environment to maximize passive income for BTC holders by optimizing asset allocation.

The funding round was led by Portal Ventures, and Peer Venture Partners, Anchorage Digital Ventures, and a number of private family offices and regular investors also participated. The financing used a combination of secure equity agreements (SAFE) and token warrants. This hybrid structure not only satisfied the risk appetite of early investors, but also left room for imagination for future token economy models.

Josh Gordon, co-founder and CEO of Nectar Group, explained that this mechanism allows Bitcoin holders to use their assets as collateral to borrow stablecoins and then invest these stablecoins in areas such as US Treasury bonds, bonds, credit products, gold, and various volatility management and options strategies. In terms of technical infrastructure, the Bitcoin collateral portion can be managed through on-chain smart contracts, or through a tripartite agreement involving borrowers, lenders, and custodians. Anchorage Digital and BitGo (BTGO.US) are responsible for providing escrow services, and the platform will also use infrastructure such as Ethereum, Suicide Network, Solana, and Ark Network to ensure the safety and efficiency of capital flows.

Woofun AI collates data and shows that this integration of multi-chain infrastructure aims to reduce risk exposure on a single chain while improving capital utilization.

In terms of specific investment strategies, the first strategy will use a diversified investment fund of approximately $13.5 billion managed by Simpleify Asset Management. Alpha Ledger is responsible for the fund's management and tokenization, while Ambler Capital SPC is responsible for issuing related investment products.

This collaborative model with a clear division of labor helps combine traditional asset management expertise with the transparency of blockchain technology. HoneyB plans to launch products to institutional investors in the fourth quarter of 2026 and services to individual investors in 2027. Gordon mentioned companies such as Bitwise, Lombard, Solve, and Centora as competitors in the field. HoneyB aims to integrate escrow, borrowing, and investment functions on a single platform while allowing institutional partners to provide related services under their own brands.

This white label model not only expands the potential market reach, but also enhances the appeal of the platform to institutional customers. By providing a one-stop solution, HoneyB aims to stand out from the competitive Bitcoin interest-bearing market and provide investors with a more convenient and efficient way to obtain profits.

Nectar Group will use the funds raised for product development, construction of escrow and financial infrastructure, compliance assurance, and expansion of sales channels. The company was founded in October 2025 and currently has more than 12 employees. Judging from the development trend, demand in the Bitcoin interest-bearing market is growing rapidly with the approval of Bitcoin spot ETFs and the influx of institutional investors. HoneyB's successful funding shows that the market is optimistic about a platform that can safely and efficiently use Bitcoin to reap profits.

However, the model is also challenged by regulatory uncertainty and market fluctuations. How to achieve stable returns on the premise of ensuring the safety of funds will be the key to HoneyB's future development. This is another industry trend worth watching after the rise of many Bitcoin lending platforms. Its subsequent performance will directly affect the development pattern of the entire Bitcoin ecosystem.