Starknet Launches strkBTC, Enabling Private Balances and Confidential Transfers

Starknet, a Layer-2 network, is introducing strkBTC, a Bitcoin-backed token designed to facilitate private balances and confidential transfers within its decentralized finance (DeFi) ecosystem. The system automatically mints tokens based on verifiable deposits, eliminating discretionary control over issuance. This approach provides protocol-level privacy, distinct from traditional third-party custodians or wallets.

The launch of strkBTC aims to enable Bitcoin to move through DeFi while concealing transfer amounts and counterparties from public view without compromising composability with other applications. Users can choose whether to shield balances, ensuring that the system remains auditable and risk tooling workable.

strkBTC will also be eligible for Bitcoin staking on Starknet, allowing users to earn yield while maintaining private balances if they opt-in. This development is part of Starknet's broader effort to make BTC more 'productive' within its network.