Starknet is betting big on privacy. The Ethereum Layer 2 network has rebranded its growing suite of privacy tools under the “Shieldnet” banner, signaling that anonymous DeFi isn’t just a feature anymore. It’s the whole identity.
At the center of this push is the STRK20 framework, a protocol that lets users hold shielded balances, execute private transfers, and interact with DeFi platforms without broadcasting their financial activity to the entire blockchain. For ERC-20 tokens on Starknet, the days of fully transparent wallet balances may be numbered.
What Shieldnet actually does
The framework launched following Starknet’s Shinobi upgrade on April 21, 2026. It allows users to wrap standard ERC-20 tokens into shielded versions, conduct transfers that don’t reveal balances or counterparties, and interact with lending, swapping, and staking protocols anonymously.
STRK20 includes selective compliance features like viewing keys. These allow users to voluntarily disclose transaction details to specific parties, such as auditors or tax authorities, without making that information public on-chain.
