Alpen Labs has kicked off Testnet III, drawing in more than 21 integration partners to test its Bitcoin-native DeFi infrastructure. This marks one of the largest collaborative efforts to validate lending, borrowing, and stablecoin features directly on Bitcoin's base layer.
The centerpiece of this testnet is the Strata bridge, a key piece of infrastructure that connects Bitcoin to Alpen's execution environment. Unlike many bridges relying on complex multi-signature setups, Strata adopts a 1-of-N trust model. This means only one honest operator is needed to maintain security, lowering traditional trust risks. Given how bridges have historically been prime targets for exploits, this approach aims to redefine security standards in Bitcoin DeFi.
Testnet III also introduces the first publicly available garbled circuit-based Bitcoin verifier, a cutting-edge cryptographic innovation improving privacy and computation verification. also the Bitcoin Dollar (BTD), a BTC-backed stablecoin developed alongside the team behind Ethereum's LUSD stablecoin, is part of this rollout, signaling a push for more native Bitcoin stablecoins.
Founded in 2022 by MIT alumni, Alpen Labs has secured approximately $19.1 million from investors such as Ribbit Capital and Castle Island Ventures. Active bridge operators like Stakely and Chainflow are live participants, with P2P.org expected to join soon. The growing ecosystem interest underlines the demand for programmable financial layers on Bitcoin, a market traditionally dominated by Ethereum-based DeFi.
