Starknet adds private wallet accounts for DeFi

• Starknet has introduced Shadow Accounts to give users more privacy for decentralised finance activity.
• The feature separates private wallet activity from users’ main on-chain accounts.
• Shadow Accounts aim to protect wallet identity while leaving individual accounts’ on-chain activity visible.

Starknet, an Ethereum layer-2 network, has introduced Shadow Accounts to separate DeFi activity from users’ main wallet identities.

The feature creates persistent, pseudonymous accounts for decentralised applications, making links to users’ primary wallets harder to identify.

Balances, contract calls and transaction activity remain visible on-chain, meaning Shadow Accounts do not provide full transaction privacy.

The feature aims to reduce wallet-linking risks for users trading, lending or holding positions across decentralised finance applications.

Starknet has launched Shadow Accounts, with the first application integration planned for 14 October 2026.

Shadow Accounts complement Starknet’s separate STRK20 privacy framework, which supports shielded token balances and private transfers.

The design focuses on identity privacy rather than transaction secrecy, allowing users to separate wallet identities while retaining public on-chain activity.

Following the update, STRK was trading down 7.4% at $0.08038.