Wrapped Token
A token that represents another cryptocurrency on a different blockchain. For example, Wrapped Bitcoin (WBTC) represents Bitcoin on the Ethereum network.
Why It Matters
Wrapped tokens allow assets from one blockchain to be used on another, enhancing interoperability. This concept matters because it makes it easier to move value across different platforms without losing functionality.
Example
For example, wrapping Bitcoin as WBTC enables it to be used in Ethereum-based DeFi applications, expanding the use cases for Bitcoin beyond its native blockchain.
Beginner Context
For newcomers, wrapped tokens illustrate how blockchain technology is evolving to create a more interconnected ecosystem, enabling diverse interactions between different cryptocurrencies.
Mike Starr
Founder, CryptoWizardTools · M.S. Organizational Management
Last reviewed: August 2026
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