Starknet Launches Shadow Accounts for DeFi Wallet Privacy
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Written by
- Ezra Reguerra, staff writer
- Felix Ng, staff editor
Starknet Introduces Wallet Privacy Feature for DeFi Activity
Latest News
Published: Oct 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 launched 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 these accounts using shielded balances held in the network’s STRK20 privacy pool. This enables them to maintain lending, trading, or other DeFi positions under different on-chain identities.
The new privacy feature obfuscates the connection between the shadow account and the wallet funding it. However, balances, transactions, and positions of these shadow accounts remain publicly visible on-chain, according to Starknet.
Once integrated into a DeFi application, the feature allows users to:
- Connect their wallets
- Switch from public to private mode
- Deposit assets into a vault
Their Shadow Accounts then maintain their positions until funds are withdrawn back into a shielded balance.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.
This launch follows StarkWare’s broader blockchain privacy push. In June, the company introduced its STRK20 privacy framework, allowing private transfers and shielded token balances on Starknet. Later that month, StarkWare demonstrated a Private Know Your Customer (KYC) system that enabled users to verify personal information without revealing their full identity documents.