Starknet launches STRK20 privacy layer while Sui rolls out confidential transfers in beta.
Crypto Technology News
Two separate blockchain networks launched privacy features on June 9 that are designed to shield transaction data while keeping disclosure mechanisms available for regulatory and compliance use. Starknet released STRK20, a zero-knowledge (ZK) privacy framework for ERC-20 tokens, while Sui launched a public beta for confidential transfers.
Source: Sui
How STRK20 Works
STRK20 allows any ERC-20 asset on Starknet to operate with shielded balances and private transfers. Developers can add that functionality without building a separate privacy layer. The framework supports transfers, swaps, lending, staking, and payments within a single integrated system.
StarkWare and the Starknet Foundation drew a clear line between STRK20 and mixing services. A mixer routes assets through a separate destination to break the transaction trail. STRK20 instead embeds shielding directly into the asset itself, making privacy a standard operating mode rather than a separate step. Damian Chen, VP of Growth at the Starknet Foundation, described the result as "practical privacy in the truest sense."
The framework includes viewing keys that allow selective disclosure of wallet activity. That disclosure is only available in response to legally binding requests. All other transaction data remains hidden from public view.
StarkWare CEO Eli Ben-Sasson was precise about what the compliance-ready label does and does not mean. He said STRK20 operates on a risk-based model in which privacy is conditional rather than absolute. Screening is applied when assets enter the shielded pool. Disclosure is available via viewing keys when a lawful request is made. Ben-Sasson added that the framework provides the infrastructure for disclosure but does not itself determine legal compliance.
The first major application built on STRK20 is strkBTC. It brings shielded balances and private transfers to Bitcoin (BTC) activity on Starknet. Users can move BTC between public and private modes through supported wallets and applications on the network.
Sui's confidential transfers feature works differently. It conceals transaction amounts rather than full transaction flows. Authorized parties can still access that data for auditing or compliance purposes when required.
Both launches arrived during a period of heightened regulatory pressure on privacy-focused projects. Zama accelerated its compliance roadmap on June 2 after a court ordered a freeze of approximately $12.5 million in USDC held in its confidential wrapper. That freeze was later lifted after the underlying legal request was resolved. Zcash also disclosed a software bug in early June that raised concerns about potential undetected counterfeit token creation. Developers addressed it through an emergency network upgrade, and no confirmed exploitation was reported. The nature of shielded pools makes full reconstruction of transaction history difficult after such disclosures.
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