Catenaa, Monday, February 23, 2026-StarkWare is integrating Nightfall, an open-source zero-knowledge privacy layer developed by Ernst & Young, into its Starknet Layer 2 network to enable confidential institutional transactions on public blockchains.
The integration aims to allow enterprises to conduct private payments, manage tokenized assets, and participate in decentralized finance without exposing sensitive information.
Public blockchains offer efficiency, liquidity, and global reach, but transparency has limited institutional adoption because balances, counterparties, and strategies are visible onchain.
Nightfall addresses these concerns by enabling private transactions by default, with selective disclosure for compliance and audit requirements such as know-your-customer verification.
The system uses zero-knowledge proof rollups compatible with Ethereum to deliver confidential cross-border payments, treasury management, and DeFi operations while preserving immutability and security. Blockchain addresses are cryptographically linked to enterprise certificates, allowing privacy and regulatory compliance to coexist.
StarkWare co-founder and CEO Eli Ben-Sasson described the integration as a “private superhighway” for tokenized deposits and stablecoins.
EY Global Blockchain Leader Paul Brody said the technology provides scalable privacy for large-scale enterprise payments onchain.
The integration reflects growing institutional adoption as stablecoin and tokenized settlement volumes surpassed $10 trillion in 2025.
Ben-Sasson noted that applying privacy technology developed by an established accounting firm on a public blockchain marks a significant milestone for mainstream blockchain applications.
