Starknet has launched strkBTC, a Bitcoin-based asset designed to offer shielded balances and confidential transactions within decentralized finance (DeFi) applications. The token is issued deterministically upon verifiable BTC deposits, ensuring privacy at the protocol level without intermediaries. Users can switch between public and shielded modes, with legal auditing facilitated through third-party controlled viewing keys. Eli Ben-Sasson, co-founder of StarkWare, emphasized that strkBTC resolves the tension between privacy and programmability, allowing Bitcoin to move through the DeFi ecosystem without compromising composability. The token also supports Bitcoin staking, enabling users to earn yield while maintaining privacy. Starknet aims to transform Bitcoin from "sleeping capital" into an active financial asset, leveraging zero-knowledge cryptography to attract institutional capital by protecting sensitive data.