Bitcoin News Today: Alpen Labs Launches Bitcoin Public Testnet for DeFi Infrastructure

Alpen Labs has launched a public testnet for its Bitcoin financial system, marking a key step toward enabling a decentralized financial ecosystem on the Bitcoin blockchain [1]. The testnet, which became operational in early August 2025, allows developers to build and test applications such as trading, borrowing, and stablecoin usage directly on Bitcoin, previously constrained to centralized platforms or alternative blockchains [2]. This development is framed as a foundational move toward creating a comprehensive, on-chain financial infrastructure that operates natively on Bitcoin [1].

The testnet utilizes a zero-knowledge rollup (ZK-rollup) architecture to improve transaction speed and reduce costs while maintaining the security of the Bitcoin network. It also features Ethereum Virtual Machine (EVM) compatibility, enabling developers to leverage tools and environments they are already familiar with [2]. The system includes the Bitcoin Dollar (BTD), a BTC-backed stablecoin developed in collaboration with the Liquity protocol team, which allows users to borrow against their BTC holdings [1]. This functionality opens the door to a range of financial services that have traditionally relied on intermediaries [2].

Alpen Labs, founded in 2022 by four MIT graduates, has attracted investment from notable firms such as Ribbit Capital, Stillmark, and Castle Island Ventures. The company is headquartered in New York and aims to bring these financial applications to Bitcoin users through a planned mainnet launch after the testnet phase [1]. CEO and co-founder Simanta Gautam emphasized the significance of the testnet, stating that Bitcoin is evolving from a mere store of value into a functional financial platform where users can participate directly without intermediaries [2].

The launch aligns with a broader trend of infrastructure development on Bitcoin. Recent months have seen increased institutional interest, including Subzero Labs securing $20 million in funding to build a real-world asset (RWA) network on the blockchain [4]. Meanwhile, Bitcoin has demonstrated strong market performance, with record monthly closes in July 2025 driven by ETF inflows [5]. These developments suggest a growing recognition of Bitcoin’s potential beyond its traditional role as a digital asset.

Alpen’s public testnet is a pivotal milestone for the Bitcoin community, signaling a shift toward a more robust and versatile financial system built directly on the blockchain [1]. While still in its early phase, the testnet represents a step toward realizing a decentralized financial infrastructure where users can engage in complex economic activities without reliance on centralized entities. This initiative could redefine how Bitcoin is used and perceived in the broader financial ecosystem [2].

Source:

[1] Bitcoin.com - https://news.bitcoin.com/alpen-labs-launches-public-testnet-for-bitcoin-financial-system/

[2] Alpen - https://www.alpenlabs.io/blog/alpen-testnet

[3] FF - https://ffnews.com/newsarticle/cryptocurrency/alpen-public-testnet-launches-offering-peek-at-bitcoins-own-financial-system/

[4] financial-news.co.uk - https://www.financial-news.co.uk/subzero-labs-emerges-with-20m-raise-to-build-the-first-real-world-network/

[5] FF - https://ffnews.com/newsarticle/cryptocurrency/bitcoin-july-close-record-etf-inflows/