StarkWare is integrating Nightfall, an open-source zero-knowledge privacy layer developed by Big Four accounting firm Ernst & Young, into its Starknet (STRK) Layer 2 network to enable confidential institutional transactions on public blockchain infrastructure.
In a statement shared with The Block, StarkWare said public blockchains have long offered efficiency, liquidity, and global reach, but their transparency has limited institutional adoption because balances, counterparties, and transaction strategies are visible onchain. The integration is designed to address those concerns by enabling enterprises to conduct private payments, manage tokenized assets, and participate in decentralized finance while maintaining compliance and auditability.
The move allows institutions to use public blockchain rails for private B2B payments, treasury operations, and tokenized asset transfers without exposing sensitive transaction details. StarkWare said Nightfall enables transactions that remain private by default while supporting selective disclosure and compliance requirements such as know-your-customer checks, positioning the system for institutional use cases.
“Blockchains can offer every institution the equivalent of a private superhighway for stablecoins and tokenized deposits,” StarkWare co-founder and CEO Eli Ben-Sasson said in the statement. “With Nightfall, Starknet will show how that future actually works.”
EY Global Blockchain Leader Paul Brody described privacy as “the missing ingredient for large-scale enterprise payments onchain,” adding that the integration unlocks scalable privacy on public blockchains built on open standards.
Aiming to unlock institutional blockchain adoption
Nightfall uses zero-knowledge proof rollups to provide private transactions on Ethereum-compatible blockchains while preserving transparency, immutability, and security. The system powers selective disclosure by cryptographically binding blockchain addresses to enterprise certificates, allowing institutions to transact confidentially while maintaining audit and regulatory controls.
StarkWare said the integration offers use cases that include private cross-border payments, confidential treasury management, and institutional participation in DeFi activities such as lending and swaps. Starknet’s architecture allows Nightfall-powered private transactions to interact with Ethereum and decentralized applications while maintaining privacy and compliance features.
The development comes as stablecoin and tokenized payment volumes continue to expand, surpassing $10 trillion in adjusted settlement volume in 2025, according to StarkWare.
Ben-Sasson, who co-founded the privacy-focused Zcash blockchain before establishing StarkWare, framed the integration as a milestone reflecting broader shifts in blockchain adoption.
“Privacy was once a countercultural idea,” he said. “Now we’re scaling privacy technology developed by EY — an icon of the establishment — on a public blockchain. That’s a full-circle moment, and it shows how far this technology has come.”
© 2026 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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