Bitcoin is transparent: every transaction is publicly recorded. Starknet is challenging that with the launch of strkBTC, a new wrapped Bitcoin asset built on its STRK20 privacy framework, designed to enable shielded transactions.
Go live on Starknet’s Ethereum Layer 2 around May 12, 2026, strkBTC allows users to toggle between public and shielded modes. In public mode, transactions are fully visible. In shielded mode, zero-knowledge (ZK) proofs verify transactions without revealing sender, receiver, or amount.
Minting and burning are managed by a five-party federation, including NEAR Protocol, ensuring no single entity controls the asset. This setup provides a decentralized custody model.
A key feature is selective disclosure: users can reveal details to specific parties like auditors, while remaining private from the public. Practical uses include private lending, anonymous trading, and Bitcoin staking, all using ZK proofs for verification.
Starknet's roadmap includes post-quantum security, as STARK proofs are more resistant to future quantum threats than alternatives like SNARKs. For institutional holders, strkBTC offers a way to deploy Bitcoin in DeFi without exposing strategies to competitors.