Written by Ezra Reguerrastaff writerEdited by Felix Ngstaff editor

Written by Ezra Reguerrastaff writer

Edited by Felix Ngstaff editor

Starknet introduces wallet privacy feature for DeFi activity

Latest NewsPublishedOct 14, 2026

Starknet’s Shadow Accounts allow users to obscure connections between their main wallets and DeFi activity, though transactions remain visible onchain.

Ethereum layer-2 network Starknet has introduced a wallet privacy feature that lets users interact with decentralized finance (DeFi) apps without publicly linking activities to their main wallets. 

StarkWare, the team behind Starknet, stated that its new Shadow Accounts feature creates separate, persistent addresses for individual applications. Users can fund the accounts using shielded balances held in the network’s STRK20 privacy pool. This allows them to maintain lending, trading or other DeFi positions under different onchain identities. 

The new privacy feature obscures the connection between the shadow account and the wallet funding it. nevertheless, balances, transactions and positions of these shadow accounts remain publicly visible onchain, as reported by Starknet. 

Once integrated into a DeFi application, the feature allows users to connect their wallets, switch from public to private mode and deposit assets into a vault. Their Shadow Accounts then maintain their positions until they withdraw funds back into a shielded balance. 

StarkWare stated the functionality could eventually extend beyond vaults to liquidity provision, lending, borrowing, staking, derivatives trading, prediction markets and NFT marketplaces. 

The launch follows StarkWare’s broader blockchain privacy push. In June, the company introduced its STRK20 privacy framework, which allows private transfers and shielded token balances on Starknet. 

Later that month, StarkWare demonstrated a Private Know Your Customer system that enabled users to verify personal information without revealing their full identity documents.

Related: StarkWare unveils Starknet quantum roadmap, says industry has no excuse

Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently.

• Privacy
• Layer2
• DeFi
• Ethereum

More on the subject

ENS seeks DAO approval to activate upgraded Ethereum naming system

18 hours ago

Ezra Reguerra

Bitmine sets 5% Ether supply ‘hard cap’ as accumulation target nears

Oct 7, 2026

Ezra Reguerra

Ethereum’s Glamsterdam upgrade launches on Sepolia testnet

Oct 6, 2026

Zoltan Vardai

ENS seeks DAO approval to activate upgraded Ethereum naming system

18 hours ago

Ezra Reguerra

Bitmine sets 5% Ether supply ‘hard cap’ as accumulation target nears

Oct 7, 2026

Ezra Reguerra

Ethereum’s Glamsterdam upgrade launches on Sepolia testnet

Oct 6, 2026

Zoltan Vardai

This article references reporting from cointelegraph.com.