Starknet launches Shieldnet privacy framework for 45 ERC-20 assets
In brief
- Starknet launched Shieldnet, a zero-knowledge privacy system for 45 ERC-20 assets via its STRK20 framework
- Encrypted viewing keys enable selective regulatory disclosure while keeping transaction details confidential
- AVNU and Ekubo protocols integrated for private swaps and liquidity provision
- Privacy pool processed 14,000+ deposits totaling $350K since launch
Privacy Without Pooling
Starknet rolled out privacy protection for 45 ERC-20 assets through its STRK20 framework, branded as Shieldnet. The system uses client-side zero-knowledge proofs to convert tokens into encrypted notes, making transaction details invisible on-chain while appearing only as metadata.
Shieldnet differs fundamentally from crypto mixers like Tornado Cash. Rather than pooling funds to obscure origins, the framework enables selective lawful disclosure through encrypted viewing keys. Users can share these keys with regulators or auditors when required, revealing only relevant transaction data while keeping everything else confidential.
Integration and Adoption
DeFi protocols AVNU and Ekubo are already integrated with the STRK20 framework, meaning users can swap and provide liquidity with privacy features enabled. Supported wallets for Shieldnet include Xverse and Ready X.
The rollout followed a measured 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, and full implementation covering 45 assets was completed by June 9, 2026.
Early Traction
The privacy pool's early adoption signals user demand. It's processed more than 14,000 deposit transactions, with total value locked reaching approximately $350K shortly after launch. The low TVL suggests the framework remains in early stages, though the transaction volume indicates active engagement.
Shieldnet represents a different approach to privacy in DeFi. By combining encryption with regulatory disclosure mechanisms, it attempts to balance user confidentiality with compliance requirements—a tension that's defined privacy debates across the industry.
