Starknet is developing a new token framework called STRK20 designed to enable privacy-focused stablecoins and digital assets while maintaining regulatory compliance. The system, created by StarkWare, is expected to launch later this year on the Ethereum Layer-2 network.
The framework embeds confidentiality directly into tokens rather than relying on external tools. This design allows transactions and balances to remain shielded while still supporting decentralized finance applications. The technology is also intended to remain compatible with the widely used ERC‑20 standard across the Ethereum ecosystem.
Token-Level Confidentiality for DeFi and Payments
STRK20 shields key transaction details such as sender, receiver, token type and transfer amount from public blockchain records. Despite the privacy layer, tokens remain fully composable within decentralized finance protocols, allowing transfers, swaps and staking activities to operate normally.
Developers say the system is designed for practical financial use. Transactions are expected to settle in under five seconds with fees below $0.20, making privacy-focused applications viable for large-scale usage.
Compliance Features and Institutional Use Cases
To address regulatory requirements, the framework includes viewing keys that allow authorized entities to access transaction information when legally required. Potential applications include confidential stablecoin payments, private corporate transactions and institutional DeFi strategies.
The technology will also support strkBTC, a bitcoin-based asset planned for Starknet that aims to enable confidential balances and transfers while expanding Bitcoin participation in decentralized finance.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.