What Is strkBTC? How Private Bitcoin Works on Starknet

strkBTC is private Bitcoin, powered by Starknet.

It is a Bitcoin wrapper deployed on Starknet that integrates optional privacy directly into the token, without creating a new asset or fragmenting liquidity.

In practice, this means users can move native Bitcoin onto Starknet and use it across applications, while also having the option to shield balances and transfers when needed.

Unlike traditional wrappers, strkBTC does not introduce a second privacy token. There is only one asset, strkBTC. Users can move between public and shielded states without swapping tokens or accessing separate liquidity pools.

TL;DR

• strkBTC is a Bitcoin wrapper on Starknet with optional privacy.
• Users can hold strkBTC in an unshielded ₿ state or a shielded [₿] state.
• Shielded and unshielded balances use the same token and the same liquidity.
• Users can move between ₿ and [₿] states at any time.
• strkBTC can be transferred, traded, and staked on Starknet.
• Xverse will support strkBTC when it becomes available.

What Is the Difference Between ₿ and [₿]?

strkBTC exists in two states:

1. ₿, the unshielded state
2. [₿], the shielded state

The unshielded ₿ state functions like a standard ERC-20 token. Balances and transfers are fully transparent onchain.

The shielded [₿] state enables users to shield balances and transactions. When funds are shielded, they are received into a new shielded address. In this case, sender and receiver activity is not publicly linkable.

Addresses must register before receiving shielded funds. This registration allows the address to interact with the privacy pool.

It’s important to understand that shielding does not create a new asset. There is still only one token, strkBTC. The brackets simply indicate the privacy state of the balance.

Users can move between the ₿ and [₿] states at any time. Shielding is optional and fully user-controlled.

How strkBTC Works on Starknet

Privacy in strkBTC is implemented at the protocol level. It is not a separate application or a standalone privacy token.

A new bridge allows users to move native Bitcoin into strkBTC on Starknet.

The initial trust model uses an explicit multisignature federation, with a roadmap to iterate toward more advanced designs over time.

Once Bitcoin is bridged, it becomes strkBTC on Starknet. From there, users can:

1. Hold strkBTC in their wallet
2. Transfer it to other users
3. Trade it across supported applications
4. Use it as collateral
5. Stake it for yield
6. Shield or unshield balances as needed

There is a single shared liquidity pool. Shielded and unshielded balances access the same applications and markets.

Both shielded and unshielded states are compatible with staking.

Why Optional Privacy Matters

On many blockchains, privacy often requires users to move into separate environments that limit access to liquidity or composability.

strkBTC is designed to avoid this tradeoff.

Privacy is optional and user-controlled. Shielded and unshielded balances interact with the same applications and markets. There is no fragmentation of liquidity and no separate privacy-only token.

The model follows a compliance-first approach. Viewing keys allow selective disclosure when required, and an independent auditing function can review transactions in response to lawful or regulatory requests.

What Is the Best Wallet for strkBTC?

When using strkBTC, choosing a secure and reliable wallet is essential.

A good strkBTC wallet should allow you to:

1. Store strkBTC securely
2. Transfer both ₿ and [₿] balances
3. Interact with Starknet applications
4. Manage staking
5. Retain full control of your private keys

Xverse is a non-custodial Bitcoin wallet that supports Bitcoin across layers. When strkBTC becomes available, Xverse will support it directly.

With Xverse, users will be able to manage strkBTC alongside their other Bitcoin assets in one place. Private keys remain encrypted on your device, giving you full control over your funds.

Frequently Asked Questions

Is strkBTC a new Bitcoin token?

No. strkBTC is a Bitcoin wrapper deployed on Starknet. It represents Bitcoin bridged onto Starknet and can move between shielded and unshielded states.

Does shielding create a separate liquidity pool?

No. There is a single shared liquidity pool. Shielded and unshielded balances access the same liquidity and applications.

Can I move between shielded and unshielded states?

Yes. Users can move between ₿ and [₿] states at any time using the same token.

Is strkBTC anonymous?

strkBTC supports optional shielding for balances and transfers. Privacy is user-controlled and supports selective disclosure mechanisms.

Can I stake shielded strkBTC?

Yes. Both shielded and unshielded balances are compatible with staking.

Will Xverse support strkBTC?

Yes. Xverse will support strkBTC when it becomes available, allowing users to hold, transfer, and manage it in a secure, self-custodial wallet.