Discover Bitcoin Dollar: financial innovation with the testnet of Alpen Labs

The public testnet of Alpen Labs is live, introducing Bitcoin Dollar (BTD): a stablecoin pegged to BTC developed through a completely native and intermediary-free approach, designed to disrupt the rules of DeFi on Bitcoin.

What is the Alpen Labs testnet and why is it revolutionary for Bitcoin?

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Alpen Labs has launched its public testnet with a clear mission: to build the foundations of a native financial system on Bitcoin. Until today, most decentralized finance – from collateralized loans to stablecoins – has been born and grown on other blockchains, primarily Ethereum. With the launch of the testnet, Alpen Labs aims to bring these functionalities directly to the Bitcoin blockchain, making advanced, native financial products possible, guaranteed by the value of BTC.

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Il sistema finanziario di Bitcoin sta arrivando online.

Il Public Testnet di Alpen è ora attivo! Prendi in prestito, scambia, guadagna rendimento & usa stablecoin – presto su Bitcoin. pic.twitter.com/t4NAxJAw9P

— Alpen (@AlpenLabs) 4 agosto 2025

The key aspect of the Alpen Labs technical solution consists in the use of zero-knowledge rollup (ZK-rollup): a technology that allows processing high volumes of transactions in a scalable, fast, and very low-cost manner, without sacrificing the security typical of Bitcoin. The ultimate goal is to make Bitcoin not only a storage asset but the backbone of a true cross-chain DeFi.

What is Bitcoin Dollar (BTD) and how does it work in the testnet?

The heart of the Alpen Labs ecosystem is Bitcoin Dollar (BTD), a stablecoin pegged to the price of Bitcoin, developed in collaboration with the Liquity team – veterans in collateralized lending systems in the crypto space. BTD allows Bitcoin holders to obtain loans directly using their holdings as collateral, maintaining full control of their assets without having to go through centralized platforms.

The BTD architecture thus enables typical solutions of DeFi – such as collateralized loans, operations in stablecoin, and secure payment flows – in a completely trustless and transparent manner. These tools, now available in testnet, pave the way for a new usage model for Bitcoin, considered by many only as a store of value.

How does the ZK-rollup architecture of Alpen Labs work?

The real technical innovation behind Alpen Labs is the ZERO-KNOWLEDGE ROLLUP: a scalability solution that aggregates numerous transactions off the Bitcoin mainnet, validates them through cryptographic proofs (zero-knowledge proof), and publishes the final result on the main blockchain. In concrete terms, it achieves:

faster transactions compared to Bitcoin’s native layer;

lower network costs for each operation;

sovereignty and security guaranteed by the base layer Bitcoin, without relying on third parties.

Furthermore, the Alpen Labs testnet is compatible with EVM (Ethereum Virtual Machine). This means that the entire community of DeFi developers accustomed to Ethereum smart contracts will be able to easily transfer tools, Dapps, and automations, facilitating a rapid and massive adoption of the finance ecosystem on Bitcoin.

Who is behind Alpen Labs and what are the goals for the future?

Founded in 2022 by four MIT graduates, Alpen Labs can already count on the support of VC and leading operators: Ribbit Capital, Stillmark, Castle Island Ventures, and figures like Wences Casares. The headquarters is located in New York, but the community is global.

The announcement of the testnet represents only a first step: in the following months, the launch of the mainnet is expected, which will bring DeFi applications, stablecoin, and lending systems directly to millions of Bitcoin users and investors. CEO Simanta Gautam was clear:

“Bitcoin is no longer just an asset to hold. We are creating a vibrant financial ecosystem for BTC, without intermediaries, collaborating with the best teams in the industry.”

What are the risks and opportunities for users and developers?

The Alpen Labs vision challenges a historical paradigm of the crypto sector: Bitcoin as an end rather than a means. The possibility of obtaining loans, using stablecoins, and building native financial dapps on Bitcoin could attract new capital and developers, significantly increasing the liquidity and vitality of the protocol.

However, every new technology involves risks: the testnet is used to identify bugs, security issues, and optimize user experience. The decentralized applications (dapp) created during the testing phase are designed to simulate blind spots, stress tests, and force the infrastructure to reveal any weaknesses before the production phase on the mainnet.

What happens now: roadmap and prospects for Bitcoin Dollar and Alpen Labs

The Alpen Labs testnet will remain open for feedback from users, devs, and crypto analysts in the coming weeks. The focus is now on perfecting Bitcoin Dollar, on the security of the protocols, and on gathering real use cases that, in the mainnet, could truly revolutionize the role of Bitcoin in the global DeFi ecosystem.

The roadmap includes, after this public testing phase, a rapid iteration of new products, audits, and corrections: only afterward will the mainnet launch make these innovations available to everyone. The future depends on Alpen Labs’ ability to offer real advantages over current DeFi solutions, and on the Bitcoin community’s responsiveness in seizing this epochal opportunity. Follow Alpen Labs channels, participate in the tests, and stay updated: everything can change in the coming weeks.