Starknet and StarkWare have introduced Shadow Accounts, a new privacy feature within the STRK20 framework. This tool allows users to interact with DeFi applications using separate, persistent pseudonymous addresses that are not linked on-chain to their primary wallet.
The system uses shielded STRK20 balances to fund these shadow addresses. A contract named ShadowAccountAnonymizer manages the flow of value, effectively severing the connection between the user's main wallet and the activity performed through the shadow account.
While transactions and balances on shadow accounts remain visible on the blockchain, the link to the owner is obscured. Users can create distinct identities for different activities, such as lending, trading, or liquidity provision, without creating an on-chain trail.
The STRK20 framework also includes a selective disclosure feature for compliance and auditing, allowing users to share financial data with specific parties when necessary. Developers can integrate this functionality using Starknet Wallet API version 0.10.4 and starknet.js version 10.8.0.
A demonstration of the integration was launched on the mainnet with the Vesu Prime vSTRK vault. The first production-ready integration was scheduled for October 14, 2026, following the initial announcement on October 13, 2026.
