Starknet just rolled out privacy protection for 45 ERC-20 assets through its new STRK20 framework, branded as Shieldnet. The system uses client-side zero-knowledge proofs to convert tokens into encrypted notes, making transaction details invisible to outside observers while still allowing selective disclosure for regulatory compliance.
How Shieldnet actually works
The STRK20 framework operates on a note-based ZK system. When users interact with it, their assets are converted into encrypted notes that appear only as metadata on-chain. The sender, receiver, and transfer amounts are all hidden from public view.
This is fundamentally different from crypto mixers like the now-sanctioned Tornado Cash. Rather than pooling funds together to obscure their origins, Shieldnet enables selective lawful disclosure through encrypted viewing keys. Users can share these keys with regulators or auditors when required, revealing only the relevant transaction data while keeping everything else confidential.
The framework supports shielded transactions across DeFi applications, not just simple transfers. Protocols like AVNU and Ekubo are already integrated, meaning users can swap and provide liquidity with privacy features baked into the experience. Supported wallets include Xverse and Ready X.
The rollout timeline
The STRK20 framework was first announced in March 2026, followed by a protocol upgrade tagged SHINOBI/v0.14.2 on April 21, 2026, which laid the technical groundwork. The first asset to go live under the framework was strkBTC, launched on May 12, 2026. USDC followed in June, and the full implementation covering 45 assets was completed by June 9, 2026.
Early engagement numbers look respectable for a brand-new privacy system. The privacy pool has processed more than 14,000 deposit transactions, with total value locked reaching approximately $350K shortly after launch.