Starknet is integrating EY's privacy protocol Nightfall to support companies in making private payments and conducting DeFi activity on networks linked to Ethereum, Cointelegraph reported on Feb. 17.

The integration is a move to help companies use blockchain on an open layer 2 rather than on bank-only networks. Nightfall is an open-source zero-knowledge (ZK) privacy layer designed to allow transactions to be verified without disclosing transaction data. This enables companies to process B2B and cross-border payments, treasury management and around-the-clock tokenised asset transfers on-chain. Starknet described this as a "privacy innovation on public blockchains" and stressed it provides an opportunity for companies to use blockchain.

Starknet aims to use Nightfall to help companies participate in the DeFi ecosystem. Activities including lending, swaps and yield strategies can be carried out in a private environment, and it also supports selective disclosure, audit functions and KYC protocols. Starknet co-founder Eli Ben-Sasson (엘리 벤-사손) said, "Blockchain will provide companies with a private fast lane for stablecoins and tokenised deposits," adding that integrating Nightfall is a step toward making that a reality. Alex Gruel (알렉스 그루엘), Starknet's global head of business development, stressed that the system built by EY is an institution-focused solution with regulatory compliance and adds reliability to existing zero-knowledge infrastructure.