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StarkWare-backed Starknet and Sui have moved new privacy tools into the market, giving users ways to hide transaction data while keeping paths open for audits and regulatory access.
Starknet launched STRK20, a privacy framework for ERC-20 assets on Starknet, while Sui opened a public beta for confidential transfers on Devnet. Both systems address the same problem: public blockchains expose more financial data than many users, issuers and institutions want to share.
STRK20 Adds Shielded ERC-20 Flows
STRK20 lets users shield supported assets, hold private balances, make private transfers and move assets back into public balances when needed. The framework uses a note-based privacy pool, where shielded assets are represented as encrypted notes and each private action is checked by a zero-knowledge proof.
Private transfers do not show the sender, receiver, amount or notes being spent to public observers. Starknet said STRK20 also includes an encrypted viewing-key framework that can let a third-party auditor trace specific user activity after a valid compliance or regulatory request.
Starknet v0.14.2 Enabled Proof Checks
The launch builds on Starknet’s v0.14.2 mainnet upgrade, which added native proof verification for confidential transactions.
That upgrade made STRK20 and strkBTC possible by letting Starknet verify offchain execution proofs through the protocol instead of relying on costly smart contract workarounds. The change gives Starknet a base layer for privacy tools that can support wallets, swaps, lending and other DeFi flows.
Sui Beta Keeps Asset Issuers in Control
Sui’s confidential transfers are live in public beta on Devnet, with a Testnet launch planned later this year. The feature lets asset issuers enable a confidential mode where balances and transfer amounts are not publicly visible onchain.
The design keeps senders, receivers and auditability visible or enforceable. Sui said issuers define how sensitive data can be accessed and under what conditions, while exchanges, analytics providers and regulators can still use familiar compliance processes.
Bridge and TRM Explore Sui Integrations
Bridge is exploring an integration as a stablecoin issuer and payments platform. TRM Labs and Merkle Science are also among the first partners looking at compliance and blockchain analytics integrations for Sui’s confidential transfer system.
That gives the beta a compliance layer from the start, rather than treating privacy and regulatory access as separate problems.
Starknet and Sui Use Controlled Disclosure
The two launches show privacy developers moving toward controlled disclosure rather than full anonymity. Starknet is trying to place privacy inside wallets, swaps, lending and other DeFi flows. Sui is focusing on issuer-controlled confidentiality for payments, stablecoins and treasury activity.
That approach may make privacy tools easier for regulated firms to test, but it does not remove legal or operational risk. The next step is adoption by issuers, wallets, exchanges and compliance providers, plus evidence that controlled disclosure works when regulators or auditors request access.
