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."

All terms and definitions may update as the Cryptionary improves.