A wrapped token is a digital asset that represents another cryptocurrency on a different blockchain. For example, Wrapped Bitcoin (WBTC) allows Bitcoin to be used on the Ethereum network, bridging the gap between separate ecosystems.
These tokens enable interoperability, allowing users to access features and services on multiple blockchains without converting their assets.
Wrapped tokens are essential for enhancing liquidity and expanding the utility of digital assets across various platforms.
« Back to Glossary Index