In Brief:
- Starknet launched Shadow Accounts, a new privacy feature, on October 13, 2026.
- Users can manage DeFi activities through separate pseudonymous addresses, funded by shielded STRK20 balances.
- The first integration with Vesu Prime’s vault went live today, promoting private deposits.
Shadow Accounts enable private transactions
Starknet has introduced Shadow Accounts, a privacy solution that allows users to execute DeFi activities without linking these actions to their main wallets. Announced on October 13, 2026, the initiative leverages the STRK20 framework, providing users with pseudonymous addresses funded through shielded balances.
While the connection between a user’s primary wallet and Shadow Account remains hidden, transactions and account balances are still visible on-chain. StarkWare emphasized this dual visibility in its announcement: “Every app should have a private mode. So we shipped it,” allowing developers to toggle between public and private modes.
Integration with Vesu Prime
Following the announcement, Vesu Prime’s vSTRK vault has become the first app to implement the Shadow Accounts feature. This integration enables users to deposit STRK privately, with the demo listing STRK at approximately 0.093 USD.
The first production integration is set to launch today, though Starknet did not disclose the specific app name.
Functionality and persistence of Shadow Accounts
To use Shadow Accounts, users connect a compatible wallet, switch to private mode, and deposit assets. The process isolates the transaction link back to the main wallet through a specialized contract called the ShadowAccountAnonymizer. This contract is deployed on both Starknet mainnet and the Sepolia testnet.
Each Shadow Account is app-specific and persists over time, allowing users to maintain various identities for different activities. Balances can be withdrawn back to shielded accounts, utilizing zero-knowledge proofs at each step.
Developer tools and limitations
Integrating Shadow Accounts into applications requires the Starknet Wallet API’s shadow_account_invoke method. Development support begins with API version 0.10.4 and starknet.js version 10.8.0. This setup allows wallets to manage proofs, transactions, and shielded balances without needing access to users’ viewing keys.
However, privacy features have limitations; public deposits and other activities could still be visible. Starknet has not revealed targets for adoption or integration counts.
StarkWare intends to expand Shadow Accounts beyond vaults, incorporating features for lending, borrowing, and NFT marketplaces.
Background on STRK20 and privacy initiatives
Shadow Accounts expand on the STRK20 framework, launched on June 9, 2026, which enables users to shield public balances with a single action, allowing for private transactions. Utilizing note-based storage for shielded assets, the framework ensures that observers cannot see the sender, receiver, or transaction amount.
Compliance measures include an encrypted viewing key for auditors, supporting Starknet’s “Confidential by default, accountable when required” approach. The integration of wallets like Ready and Xverse into one-click shielding has facilitated the use of private swaps, marking a significant addition to the ecosystem.
On-chain gaming integration
Beyond DeFi, Starknet’s privacy initiative extends to gaming with Provable Games’ Loot Survivor, exploring hidden in-game information and governance through the STRK20 framework. The fully on-chain survival arcade game utilizes its own token, LORDS, and rewards players on a leaderboard basis.
Potential use cases for Shadow Accounts also include NFT marketplaces, where buyers can trade items without exposing holdings linked to main wallets.
