Starknet unveils Shieldnet for enhanced privacy in DeFi
Starknet is betting big on privacy. The Ethereum Layer 2 network has rebranded its growing suite of privacy tools under the “Shieldnet” banner, signaling that anonymous DeFi isn’t just a feature anymore. It’s the whole identity.
At the center of this push is the STRK20 framework, a protocol that lets users hold shielded balances, execute private transfers, and interact with DeFi platforms without broadcasting their financial activity to the entire blockchain. For ERC-20 tokens on Starknet, the days of fully transparent wallet balances may be numbered.
What Shieldnet actually does
The framework launched following Starknet’s Shinobi upgrade on April 21, 2026. It allows users to wrap standard ERC-20 tokens into shielded versions, conduct transfers that don’t reveal balances or counterparties, and interact with lending, swapping, and staking protocols anonymously.
STRK20 includes selective compliance features like viewing keys. These allow users to voluntarily disclose transaction details to specific parties, such as auditors or tax authorities, without making that information public on-chain.
Wallets like Xverse and Ready already support these privacy tools, letting users perform anonymous swaps, lending, and staking directly from their interfaces.
strkBTC: shielded Bitcoin on an Ethereum L2
The headline product of the Shieldnet initiative is strkBTC, a shielded Bitcoin wrapper that went live on May 12, 2026. Each strkBTC token is pegged 1:1 to actual Bitcoin, meaning holders get exposure to BTC’s price while keeping their balances and transactions private on Starknet.
strkBTC also includes quantum-resistant security properties, building resistance to future cryptographic threats into the asset’s architecture from day one.
The numbers behind Starknet’s momentum
Starknet currently holds approximately $655 million in total value locked and supports around 47,000 daily active users.
Starknet’s underlying technology gives it structural advantages in the privacy race. As a ZK-rollup, it already generates zero-knowledge proofs for every batch of transactions submitted to Ethereum. The network also supports account abstraction, meaning wallets can be programmed with custom logic, including privacy-preserving features, without requiring changes to the base protocol.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Why suspend RMPs? Explanation from New York Fed SOMA Manager Perli
"Agent vs US Treasury" — Who Will Dominate the US Stock Market?
The wave of AI Agents and US Treasury yields are splitting the US stock market into two worlds: Meta's release of the Muse model boosted its market value by $220 billion in a single week, propelling the Nasdaq's standout performance; however, excluding AI stocks, the S&P 500 actually fell 1% this week, with the number of new lows on the New York Stock Exchange surpassing new highs for nine consecutive days, signaling the near end of "breadth trading." Goldman Sachs bluntly stated that this is a "frustrating cat-and-mouse game" between the stock market and interest rates—any breakout can be snuffed out by the bond market at any time, so equity holders must short US Treasury bonds to hedge simultaneously.
Hopes for a ceasefire between the US and Iran encounter obstacles again! Trump rejects Iran's seven-day proposal; inflation pressure under $100 oil prices remains difficult to ease
Trump rejects a ceasefire with Iran, and it is expected that bombings will occur again after the midterm elections. The president doubts whether Tehran will meet his demands.
Tesla ramps Optimus production 10-fold but robot hands are holding Elon back
Crypto prices
More
