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Wrapped Token


What Are Wrapped Tokens? | Binance Academy

A wrapped token is a cryptocurrency token pegged to the value of another crypto. It’s called a wrapped token because the original asset is put in a wrapper, a kind of digital vault that allows the wrapped version to be created on another blockchain.


Ever found it frustrating that you can’t use BTC on Ethereum? ETH on Binance Smart Chain? Coins that exist on a given blockchain can’t be simply transferred to another.

Wrapped tokens are a way to circumvent this limitation and use non-native assets on a blockchain.


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.