A wrapped token is a tokenized version of another cryptocurrency. It’s pegged to the value of the asset it represents and typically can be redeemed for it (unwrapped) at any point. It usually represents an asset that doesn’t natively live on the blockchain that it’s issued on
Much like stablecoins, wrapped tokens are tokenized representations of other assets that help bridge the gap between various on-chain systems. In the case of Wrapped Bitcoin, cryptocurrencies like WBTC and renBTC help investors with gaining access to Ethereum’s vast DeFi ecosystem..
