Tokens & Assets
Also: pegged token
Wrapped Token
A tokenized version of an asset from another blockchain, backed 1:1 by the original asset held in custody.
Wrapped tokens represent assets from one blockchain on another — for example, Wrapped Bitcoin (WBTC) is an ERC-20 token on Ethereum backed 1:1 by BTC held by a custodian. They enable cross-chain asset usage without native bridge infrastructure. The custodial model introduces counterparty risk: WBTC holders depend on the custodian to honestly hold the underlying BTC. Decentralized alternatives use bridge mechanisms but face different smart contract risks.
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