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Starknet has introduced strkBTC, a new Bitcoin-based asset designed to enable private balances and confidential transfers on its Ethereum layer-2 network. The postStarknet has introduced strkBTC, a new Bitcoin-based asset designed to enable private balances and confidential transfers on its Ethereum layer-2 network. The post

Starknet Unveils Bitcoin-Based Token to Bring Privacy and DeFi Power to Ethereum Layer-2

Author: Cryptonews AU

Source: Cryptonews AU

2026/02/27 12:53

2 min read

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Starknet is launching strkBTC, a Bitcoin-backed token that enables private balances and confidential transfers within its DeFi ecosystem.
The system automatically mints tokens based on verifiable deposits to remove discretionary control, using protocol-level privacy rather than third-party custodians.
The initiative aims to attract institutional users by allowing them to shield transaction data while maintaining eligibility for Bitcoin staking and yield products.

Layer-2 network Starknet is preparing to launch strkBTC, a Bitcoin-backed token designed to enable private balances and confidential transfers inside Starknet DeFi.

StarkWare (the parent company) and the Starknet Foundation said strkBTC is minted automatically when users deposit BTC, using a deterministic process tied to verifiable deposits. Accordingly, this removes discretionary control over issuance.

Privacy is built into the protocol, not handled by custodians, wallets, or third-party apps.

Overall, the aim is to let Bitcoin move through DeFi while hiding transfer amounts and counterparties from public view, without breaking composability with other applications. Starknet clarified that users can choose whether to shield balances, and the system is designed to keep auditability and risk tooling workable.

Read more: Anchored in the Past: Why Investors Are Missing Crypto’s Biggest Opportunity

strkBTC Eligible for Bitcoin Staking

strkBTC will also be eligible for Bitcoin staking on Starknet, allowing users to earn yield while keeping balances private if they opt in.

The project fits Starknet’s broader effort to make BTC more “productive” on its network. Starknet has already rolled out Bitcoin staking and yield products, plus incentives to bring BTC into lending, collateral, and other DeFi uses.

Starknet executives said protocol-level privacy could help bring in larger and institutional users who avoid public chains because positions, counterparties, and trading strategies are exposed by default.

The launch builds on Starknet’s earlier bitcoin initiatives, including staking and yield products that let users earn rewards while maintaining custody, along with incentive programs aimed at activating idle BTC for lending, collateral, and other DeFi use cases.

Related: US Democrats Probe Binance Amid $1.7 Billion Iranian Sanctions Evasion Allegations

The post Starknet Unveils Bitcoin-Based Token to Bring Privacy and DeFi Power to Ethereum Layer-2 appeared first on Crypto News Australia.

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