Starknet Unveils Privacy Layer Enabling Private ERC20 Activity With Built‑In Disclosure Tools

TL;DR:

• Starknet launched STRK20, a zero-knowledge privacy framework for balances and transfers of any ERC20 asset.
• The framework includes viewing keys that allow selective disclosure of activity in response to legal requirements, without exposing all transactions to the general public.
• strkBTC was the first use case for STRK20, bringing shielded balances and private transfers to bitcoin activity on Starknet.

Starknet launched a new privacy framework based on zero-knowledge technology designed to provide shielded balances and private transfers of any ERC20 asset on its network. The system incorporates disclosure mechanisms aimed at satisfying regulatory and compliance requirements.

The framework, called STRK20, allows developers to incorporate private transaction flows without needing to build an independent privacy infrastructure. It is compatible with transfers, swaps, loans, staking, payments, and donations. Viewing keys, in turn, ensure that only information relevant to legally binding requirements is disclosed, keeping the rest of the activity out of the public eye.

Privacy shouldn’t mean new assets, new wallets, or new applications.

What if it worked where you already use crypto?

June 9, privacy comes to [Starknet] pic.twitter.com/42JmCI93qc

— Starknet (Privacy Arc) (@Starknet) June 8, 2026

The Starknet team clarified that STRK20 is not a mixer. Unlike traditional mixing, which diverts assets to a separate destination to obscure transaction history, STRK20 integrates shielding directly into the asset flow. Privacy operates as a native mode of activity, not as a specialized detour.

STRK20 in Action: Private Bitcoin on Starknet

“This is practical privacy in the most genuine sense,” said Damian Chen, VP of Growth at the Starknet Foundation. According to Chen, the framework allows users, developers, and institutions to maintain their confidentiality from the public while preserving compliance-ready disclosure paths whenever the law requires it.

The launch of strkBTC is the first major use case for STRK20, bringing shielded balances and private transfers to bitcoin activity within the network. Rather than treating privacy as a separate destination, strkBTC integrates shielding as part of the asset experience, allowing bitcoin to move between public and private modes across Starknet-compatible wallets and applications.

Eli Ben-Sasson, CEO of StarkWare, argued that ZKP-driven privacy solutions like STRK20 will lead to more precise regulatory actions over time. He contended that current investigations into privacy infrastructure can affect wallets and their volumes, and that advances in ZK technology could allow future investigations to target specific information with less collateral impact.