Wrapped Token
A wrapped token is a 1:1 IOU that lets a coin work on a chain it wasn't built for — WBTC is Bitcoin "wrapped" as an Ethereum token, locked BTC in custody b
A wrapped token is a 1:1 IOU that lets a coin work on a chain it wasn’t built for — WBTC is Bitcoin “wrapped” as an Ethereum token, locked BTC in custody backing each one. It unlocks cross-chain DeFi for otherwise stranded assets.
Why it matters
Wrapping reintroduces exactly the trust crypto tries to remove: WBTC is only as good as its custodian’s honesty and solvency. Every wrapped asset is a bridge-grade trust assumption wearing a familiar ticker — verify the custodian and the mint/burn transparency before treating it like the real thing.