According to Bitcoin.com, Alpen Labs has launched the Bitcoin over-collateralized stablecoin BTD, which is pegged 1:1 to the US dollar and fully backed by Bitcoin as collateral. BTD will operate on the ZK Rollup Layer2 network developed by Alpen Labs, designed to reduce trust assumptions while integrating the Liquity V2 lending protocol, allowing users to directly collateralize BTC to mint stablecoins. BTD adopts an immutable smart contract design, not relying on governance tokens or upgradable code, in line with Bitcoin's decentralization principles. Unlike most stablecoins, BTD does not use an algorithmic model or centralized management but still relies on third-party oracles to provide BTC/USD price data. Alpen Labs stated that they will mitigate oracle risk through multi-source data aggregation.

Developers can experience BTD on the upcoming testnet, which will support decentralized lending and trading applications and conduct integration testing with Bitcoin payment layers like Taproot Assets. David Seroy, head of the Alpen Labs ecosystem, emphasized that BTD is committed to expanding the Bitcoin financial ecosystem while maintaining decentralization.