Starknet has unveiled strkBTC, a wrapped bitcoin asset designed to introduce shielded transactions to bitcoin holders seeking greater privacy.
The announcement was made on 26 February 2026, positioning strkBTC as a native asset within the Starknet ecosystem.
The project aims to address what developers describe as bitcoin’s long-standing transparency issue on its public ledger.
While Bitcoin remains widely recognised as a global store of value, every transaction and wallet balance remains visible on-chain.
strkBTC allows users to bridge their BTC into Starknet and mint a tokenised version backed on a 1:1 basis.
The supply of strkBTC is issued deterministically following verifiable bitcoin deposits, ensuring that circulating tokens always mirror real BTC reserves.
Users can choose between two operating modes when holding strkBTC within Starknet.
The Unshielded mode functions like a standard ERC-20 token with fully transparent balances and transfers.
The Shielded mode conceals balances and transaction details through the use of zero-knowledge proofs.
Starknet’s validity rollup architecture underpins the system, maintaining scalability and security while supporting privacy features.
Developers state that shielded bitcoin can still participate in decentralised finance applications without sacrificing composability.
This means users could theoretically post shielded bitcoin as collateral for a loan without publicly revealing their broader holdings.
“strkBTC is an innovation that goes beyond [performance vs. privacy]… It enables private use of bitcoin in DeFi while preventing capital isolation,” Eli Ben-Sasson said.
Starknet emphasised that the privacy model is structured to balance confidentiality with regulatory considerations.
Transactions are shielded by default, preventing public observers from viewing amounts or counterparties.
The network incorporates a selective disclosure mechanism through an encrypted Viewing Key.
Users may share this Viewing Key with auditors, tax authorities or regulators when required by law.
The system allows movement between shielded and unshielded states depending on user needs.
Developers describe the framework as practical privacy rather than absolute anonymity.