Term
Wrapped Token
A tokenized representation of an asset on another chain, usually backed 1:1 and redeemable.
Type:
token
interoperability
1
definition
Wrapped tokens let assets move across ecosystems by locking the original and minting a representation elsewhere. Designs vary from custodian-based to trust-minimized bridges.
Example 1.1
"WBTC is a wrapped token on Ethereum backed by Bitcoin, enabling BTC liquidity in DeFi apps."
Related Terms
Token
→Tokens are programmable digital assets residing on a blockchain, often representing a variety of tangible and intangible assets.
basics
blockchain
Bridge
→Infrastructure that enables moving assets or messages across blockchains.
technology
defi
Smart Contract
→Programmatic rules executed by the blockchain to enforce agreements without intermediaries.
blockchain
scripting
All terms and definitions may update as the Cryptionary improves.
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