Starknet Adds Optional Token Privacy as Zcash Layer 2 Remains Experimental

Starknet’s STRK20 framework lets users shield supported tokens, while a separate proposal called Ztarknet explores programmable execution on Zcash (ZEC). STRK20 is operating on Starknet; Ztarknet remains at the proof-of-concept stage, with its production design unfinished.

Users can shield supported ERC-20 assets in STRK20’s pool, then transfer them without exposing the sender, recipient, amount or token type. Users can later return assets to public balances. Deposits, withdrawals, pool interactions and their timing remain visible, and some actions or amounts in decentralized finance applications may also be public.

Starknet’s v0.14.2 upgrade went live on mainnet April 20, 2026, adding in-protocol proof-verification infrastructure associated with SNIP-36 for private transactions. Separately, strkBTC, the first asset built on STRK20, was live by May 12. It is backed by Bitcoin (BTC) locked on the Bitcoin network and offers public and shielded modes.

The framework’s first wallet phase was live by June 9, enabling shielding, private transfers and private swaps through supported wallets including Ready X and Xverse. Starknet announced privacy features for USD Coin (USDC) on June 25, including shielded balances and private transfers while retaining the standard ERC-20 token.

Users can also use viewing keys to disclose transaction details to an authorized party in response to a lawful request. The keys are scoped to a user’s activity, providing a way to share information while using the privacy features.

Ztarknet is a distinct proposal for running Cairo applications on a layer 2 above Zcash. It would have Zcash nodes verify STARK proofs through a proposed Transparent Zcash Extension, while leaving Zcash’s existing shielded pools unchanged. A test environment has verified a proof from Ztarknet blocks and run a pixel-art application; the effort has not reached a finished production design.

More than $2 million in assets had undergone privacy processing as of Oct. 11, while 56 different assets were included in Starknet’s unified privacy pool.