Ethereum Layer-2 network Starknet (STRK) announced it has developed new infrastructure to support the issuance of privacy-focused stablecoins and other digital assets.
This new framework, called “STRK20,” is scheduled to be rolled out on Starknet later this year.
Developed by StarkWare, the development team behind Starknet, the STRK20 framework aims to enable teams to create privacy-focused stablecoins and other token types while maintaining regulatory compliance. The new system aims to provide token-level privacy for assets issued on Starknet. This ensures that users’ transaction details and balances remain private, while the system can function seamlessly with decentralized finance (DeFi) applications.
According to the team’s statement, the solution will be compatible with ERC-20, the most widely used token standard in the Ethereum ecosystem. StarkWare stated that this will allow Ethereum and ERC-20 tokens to benefit from these privacy features, and will particularly enable private DeFi use cases.
Eli Ben-Sasson, CEO of StarkWare and co-founder of Zcash, stated that the developed technology could significantly accelerate the adoption of stablecoins by institutional representatives. According to Ben-Sasson, the STRK20 infrastructure has the potential to “speed up institutional adoption by several steps” by providing privacy in transfers, exchanges, staking, and other DeFi operations. Furthermore, the system aims to operate without compromising speed, cost efficiency, and regulatory compliance.
The price of STRK has fallen by 73% in the last year.
*This is not investment advice.
