Starknet launches STRK20 privacy for every ERC-20 token

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Starknet launches STRK20 privacy for every ERC-20 token

Starknet has introduced STRK20, a new system that enhances privacy for ERC-20 tokens. It allows for confidential account balances and private transactions, as reported to The Block.

Summary

  • STRK20 gives ERC-20 assets shielded balances and private transfers without requiring separate privacy infrastructure stacks.
  • Viewing keys allow targeted disclosure for valid legal requests while protecting other users’ transaction histories.
  • strkBTC provides the framework’s first live use case, adding optional privacy to Bitcoin activity.

Developers can add confidential flows without building a separate privacy system for each token.

This platform allows users to send and receive funds, exchange currencies, lend and stake crypto, make payments, and donate to causes – all through supported wallets and apps. With a valid legal request, authorities can access limited transaction history using viewing keys.

— Starknet (Privacy Arc) (@Starknet) June 4, 2026

STRK20 brings private balances to Starknet tokens

STRK20 allows users to transfer assets between public and private modes without changing the original token. It uses secure, confidential proofs to verify that all private transfers are valid, without revealing any details about account balances or transaction records.

This system leverages Starknet’s built-in proof technology and contracts written in Cairo. Users deposit funds into a common, private pool, conduct transactions within it, and withdraw their assets when they need to. According to Starknet, this approach eliminates the need for creating separate private tokens or dividing funds across different markets.

Each person taking part also securely registers a unique viewing key. If a legitimate legal request is made, an independent auditor can use this key to review that individual’s activity, while keeping the data of all other users private.

Damian Chen, VP of Growth at the Starknet Foundation, explained that this approach offers genuine privacy. It allows people to keep information confidential publicly, but still provides a way to reveal it when necessary.

Starknet explains that STRK20 isn’t like a typical ‘mixer’ for increasing privacy. Unlike mixers which route tokens through a special service to hide where they came from, STRK20 builds privacy features directly into how wallets and apps normally work with the asset.

strkBTC becomes the first major STRK20 use case

strkBTC was the first digital asset created using the STRK20 standard. This Bitcoin-backed token, designed to work with the Ethereum network (ERC-20), offers both public and private options. Users can choose to hide their account balances and transaction details for added privacy, and then make them visible again when they want.

As a crypto investor, I’m excited to see Starknet growing its privacy features! It’s now easier to shield transactions using Ready X and Xverse wallets. Plus, they’re making private swaps possible with avnu and Ekubo, and expanding into lending with Vesu and staking through Endur. It’s all part of a bigger push to build out a more robust and private ecosystem, which I think is great for long-term adoption.

While these DeFi transactions aim for privacy, some details might still be publicly viewable. Specifically, amounts moving through open liquidity pools can be tracked on the blockchain, even if your wallet isn’t directly linked. Furthermore, the more people who use these shared pools, the stronger the overall privacy becomes.

Starknet expands a privacy plan announced in March

Starknet launched STRK20 in March, allowing users to keep their ERC-20 token balances private and choose when to reveal them. A recent upgrade to version 0.14.2 added the ability to directly verify proofs for these encrypted balances and private transactions.

According to StarkWare CEO Eli Ben-Sasson, zero-knowledge systems could make it possible for investigations to request very specific pieces of information in the future. While this technology hasn’t been thoroughly reviewed by regulators yet, organizations will need to carefully evaluate its legal and security aspects, as well as how it would work in practice, before they start using it.

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2026-06-09 16:20