Starknet has officially launched Shadow Accounts, a privacy-focused feature built around the STRK20 standard that lets users separate decentralized application activity from their main wallet. The announcement was made across Starknet’s official channels on Tuesday and follows growing concerns about public wallet traceability in DeFi.
The new feature enables developers to integrate persistent pseudonymous identities for each dApp. Users can toggle between public and private modes, keeping their master account’s history and holdings hidden while interacting with shielded STRK20 balances. This design is intended to protect investment strategies, balances, and liquidity positions from being exposed by on-chain activity.
Using the Starknet Wallet API, developers can build privacy into lending, staking, trading, and prediction market protocols without reworking their architecture or requiring users to share viewing keys. Initial rollouts are planned for key ecosystem protocols including Ekubo, SuperVega, and Opus Money.
Starknet positions the launch as a step toward practical privacy on Ethereum layer-2 networks, with the project continuing its roadmap toward quantum resistance. While trading volume for Starknet has remained subdued, the new privacy capability could attract developers and users looking for confidential DeFi interactions and improve engagement across the ecosystem.
