StarkNet enables KYC DeFi via EY Nightfall integration

EY Nightfall on StarkNet enables confidential payments, treasury, and DeFi

StarkWare is integrating EY’s Nightfall privacy technology into StarkNet, enabling confidential institutional activity on public rails. As reported by The Block, the integration covers payments, treasury management, and DeFi.

The approach targets firms that need transaction confidentiality without leaving public networks. It combines privacy with controls intended to support audit and compliance expectations.

Why this matters: StarkNet privacy with auditability and compliance

Nightfall applies zero-knowledge proofs to mask transaction details while preserving verifiability. According to Forklog, the StarkNet stack now supports private-by-default payments and DeFi for institutions via EY’s ZK privacy layer.

Unlike mixers, the model emphasizes selective disclosure and identity-gated access so auditors can review specifics when required. This aligns confidentiality with traceability and policy reporting needs.

EY’s design choices also reflect enterprise preferences for deterministic operations. “A ZK-rollup approach offers instant finality and reduces operational complexity, with no need to accommodate challenging incorrect blocks,” said Paul Brody, EY Global Blockchain Lead.

Near-term, institutions can route KYC-verified wallets into permissioned DeFi and payment flows while keeping on-chain amounts and counterparties shielded from public view.

Selective disclosure can provide regulators and auditors with evidence on demand, while routine operations remain private. This reduces data leakage risks in treasury, settlements, and liquidity operations.

At the time of this writing, indicative STRK market data show a price of $0.04796, very high 19.90% volatility, and RSI(14) of 34.94, with sentiment flagged as bearish. This context is informational and not an investment view.

How Nightfall works and onboarding requirements

ZK proofs with selective disclosure and identity-gated access on StarkNet

Nightfall uses zero-knowledge proofs to validate transfers without revealing amounts or participants publicly. Identity controls gate access, while selective-disclosure keys allow compliant sharing with authorized reviewers.

The solution operates on StarkNet to pair rollup scalability with data minimization. Auditability is preserved by proving correctness on-chain while keeping sensitive details confidential off-chain unless disclosure is triggered.

Institutional onboarding: KYC verification, access controls, and audit workflows

Onboarding is designed around KYC verification before wallet activation, role-based access controls, and approvals aligned with internal finance policies.

Audit workflows rely on controlled logs and selective proof sharing to support internal audit, external assurance, and regulatory reviews across jurisdictions, subject to local requirements.

FAQ about EY Nightfall

How does the integration enable confidential payments and institutional treasury operations on a public blockchain?

Zero-knowledge proofs conceal transaction details on StarkNet while validating state. Institutions transact privately on public rails, with optional disclosure enabling treasury operations and DeFi access.

In what ways is the solution KYC/AML-aligned, and how is auditability achieved via selective disclosure?

Entities are KYC-gated before access. Selective disclosure lets authorized auditors view underlying data, aligning with KYC/AML expectations while keeping routine activity private on-chain.