Starknet unveils STRK20 for Private Assets and Compliant DeFi

TLDR

• Starknet is building STRK20 for private stablecoins and other assets.

• STRK20 hides balances and transfers while keeping DeFi compatibility.

• Viewing keys let regulators access transaction data when legally required.

• StarkWare targets sub-five-second settlement and costs below $0.20.

Starknet is moving to add privacy features to stablecoins and other tokens through its new STRK20 framework. The plan aims to give users confidential transfers while keeping access for regulators under legal process.

The system is being developed by StarkWare and is expected to launch on Starknet later this year. It is designed to make privacy part of the token itself instead of relying on separate tools.

STRK20 Brings Privacy Directly into Token Design

STRK20 is meant to support privacy-focused stablecoins and other assets on Starknet. The framework allows balances and transfers to remain hidden from public view onchain.

StarkWare said the design can work across ERC-20 tokens, which are widely used on Ethereum. That means teams could issue private assets while staying connected to existing DeFi activity.

The company said the privacy feature is embedded at the token level. Because of that, developers do not need extra infrastructure to add shielding functions.

StarkWare also said the framework is being built to keep assets usable in decentralized finance. That includes transfers, swapping, staking, and other common onchain actions.

Compliance Remains Part of the Framework

The STRK20 model includes viewing keys for authorized access. These keys can allow regulators, auditors, or law enforcement to review data when the law requires it.

That approach aims to keep transaction data private from the public while allowing legal oversight. StarkWare presented this as a way to combine privacy with compliance standards.

Eli Ben-Sasson, StarkWare CEO and Zcash co-founder, said the feature could speed up stablecoin adoption “up about five gears.” He said privacy could support transfers, swaps, staking, and broader DeFi use.

He also said, “Privacy shouldn’t be an afterthought or a compromise to functionality.” In a separate statement, he described the model as “a turnkey framework that turns privacy into a token-level attribute.”

StarkWare Targets Lower Costs and Faster Settlement

StarkWare said transactions under the framework are expected to settle in under five seconds. The company also set a target cost of less than $0.20 per transaction.

Those targets are aimed at making privacy tools easier to use in financial products. Lower fees and faster settlement could help stablecoin issuers and institutions test private payments at scale.

The company said STRK20 avoids the structure used by mixers and similar tools. Instead, privacy stays within the asset, which helps preserve liquidity and keeps users in the same market structure.

StarkWare also said the shared framework can support public and private states within one system. That may help users move between visible and shielded activity without shifting into isolated pools.

Stablecoins, Payments, and Bitcoin-Based Assets are early use cases

StarkWare listed several possible uses for the framework. These include stablecoins that reduce front-running, corporate payments that hide salary data, and institutional DeFi activity.

The company also tied the framework to strkBTC, a bitcoin-based asset announced by Starknet last month. That asset is expected to support shielded balances and confidential transfers on Starknet.

StarkWare said early use cases under exploration include anonymous swaps on Ekubo and anonymous staking for BTC and STRK. More DeFi integrations are also being explored.

The rollout places Starknet in the middle of a growing push for privacy tools that still support compliance. If developers adopt STRK20, Starknet could become a venue for private stablecoins, payments, and tokenized assets within DeFi.