Starknet's STRK20 brings Zcash-style private tokens to DeFi: 5 things to know

Starknet, an Ethereum layer-2 network, now offers what its backers call programmable private money: tokens whose balances and transfers can be hidden, yet still used in DeFi. The effort runs on two tracks — a live framework called STRK20 and a project in development called Ztarknet — and involves StarkWare co-founder Eli Ben-Sasson and Zcash founder Zooko Wilcox, Crypto Briefing reports.

STRK20 is live and works with ordinary tokens

STRK20 is a token-level privacy framework for any ERC-20-style asset, the standard format for most Ethereum tokens. Once a token adopts it, the sender, receiver and amount of transfers can all be kept out of public view. It builds on Starknet v0.14.2, the April 2026 upgrade that added native STARK proof verification through a proposal called SNIP-36. Starknet has been pushing privacy for months — see our report on its shadow accounts.

Private doesn't mean idle

Earlier privacy coins mostly let you hold and send money. STRK20 is designed to support swaps, lending and staking while transaction details stay confidential. That matters because public blockchains broadcast every trade, which exposes large positions and invites front-running. If DeFi is new to you, start with our guide on what DeFi is.

A built-in compliance switch

Two tools are meant to answer regulators' main objection to privacy coins. A viewing key lets an authorised party, such as an auditor, see details hidden from everyone else. Selective disclosure lets a user prove a specific fact about their activity to a specific party without revealing everything. Supporters argue this kind of "compliant privacy" is what institutions will need as rules tighten.

strkBTC is the first big asset

The first major token to use STRK20 is strkBTC, a shielded form of bitcoin on Starknet — effectively private BTC that can still move through Starknet apps.

Ztarknet would put Starknet on Zcash

The second track, Ztarknet, would run Starknet's execution engine as a layer 2 on top of Zcash, paying settlement fees in ZEC. Its testnet launched in November 2025 with a live explorer and showed Circle STARK proofs being verified on a modified Zcash testnet. It uses the Madara sequencer and the Stwo prover and is designed not to change Zcash's existing shielded pools. It is still in development, so the things to watch are its path from testnet to production, how ZEC-based settlement performs, and whether developers actually build on it.