Starknet has launched STRK20, a privacy framework designed to add confidential balances and private transfers to ERC-20 tokens while maintaining regulatory compliance.
The new capability allows developers to deploy tokens with built-in privacy features that enable users to shield assets, hold balances privately and send transactions without exposing details on public block explorers.
Despite the privacy features, the system allows selective disclosure so transaction data can be shared with auditors, regulators or accountants if required.
STRK20 introduces what Starknet calls transaction-layer privacy, where asset ownership can remain hidden even though the transaction itself still settles on a public blockchain.
Users can move tokens into a private state, transfer them confidentially or convert them back to a public balance without splitting liquidity between separate token versions.
Initial integrations are expected across the Starknet ecosystem, including privacy-enabled swaps on Ekubo Protocol and potential private staking for assets such as Bitcoin and the network’s native Starknet.
The launch comes as developers explore ways to improve financial privacy on blockchains like Ethereum while still meeting compliance requirements.
Starknet previously introduced a related feature called strkBTC that allows optional shielding for Bitcoin balances while still enabling participation in decentralised finance applications.
At the time of reporting, Bitcoin price was $69,914.91.