Starknet unveils Shieldnet for enhanced privacy in DeFi

Starknet launched “Shieldnet,” a privacy suite centered on the STRK20 framework that enables shielded ERC‑20 balances, private transfers, and anonymous DeFi interactions. The initiative — deployed after the Shinobi upgrade on April 21, 2026 — includes selective compliance tools (viewing keys) and wallet support from providers like Xverse and Ready. The flagship product, strkBTC, went live May 12, 2026 and is a 1:1 shielded Bitcoin wrapper with quantum‑resistant features. Starknet currently holds ~$655 million TVL and ~47,000 daily active users. Market impact: Shieldnet could boost user onboarding and on‑chain activity on Starknet, increase demand for ETH (L2 gas/use) and wrapped BTC exposure on the network, and attract privacy‑sensitive capital — potentially bullish for Starknet ecosystem tokens and related crypto activity, while selective compliance may ease regulatory friction.