Starknet, a leading Ethereum layer-2, has unveiled STRK20 — a privacy token standard for any ERC-20 asset. Users can shield their token balances and transaction history without giving up access to decentralized finance applications.
On-chain transparency exposes trillions of dollars in daily flows. Starknet noted: "Today, trillions of dollars in value move on-chain with full transparency…yet balances, counterparties, and activity remain visible to anyone watching." STRK20 addresses this by enabling private ownership with public execution.
Shielded Balances, Private Transfers, State Switching
The standard lets users cloak their ERC-20 balances and send tokens anonymously. They can toggle between public and private states — go visible to interact with a DeFi pool, then hide again. Any team can integrate STRK20 simply by deploying their ERC-20 on Starknet, preserving liquidity composability.
DeFi Integration: Anonymous Swaps & Staking
Privacy is embedded into real DeFi workflows. Ekubo Protocol already supports anonymous swaps under STRK20; anonymous staking for BTC and STRK tokens is live. Users hold private balances and interact with smart contracts without exposing activity.
Compliance by Design
Institutions need both privacy and regulatory clarity. STRK20 includes selective disclosure — users can reveal transaction details to auditors, regulators, or accountants when needed, while staying private by default. This dual path satisfies individual and institutional requirements: default anonymity, auditable when required.
Earlier, Starknet launched strkBTC, enabling optional Bitcoin shielding within DeFi. STRK20 extends privacy to every ERC-20 token, covering stablecoin payments, ETH transfers, and private BTCFi use cases.