Starknet Launches Shieldnet Privacy Framework for ERC-20 Assets

Starknet, an Ethereum layer 2 network, has introduced a new privacy framework called Shieldnet, designed to protect transactions involving 45 ERC-20 assets. This system utilizes client-side zero-knowledge proofs to convert tokens into encrypted notes, ensuring that transaction details such as sender, receiver, and amounts remain confidential while allowing for selective disclosure to meet regulatory requirements.

The STRK20 framework operates on a note-based zero-knowledge system, where user assets are transformed into encrypted notes that only display metadata on the blockchain. Unlike traditional crypto mixers, Shieldnet allows users to share encrypted viewing keys with regulators or auditors, enabling them to reveal only necessary transaction information while keeping other details private.

The rollout of the STRK20 framework began in March 2026, with a protocol upgrade in April that established the technical foundation. The first asset to be integrated was strkBTC, launched in May, followed by USDC in June. By June 9, 2026, the full implementation covering all 45 assets was completed. Early engagement statistics indicate that the privacy pool has processed over 14,000 deposit transactions, with a total value locked of approximately $350,000 shortly after its launch.

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Source: KLEA News