wrapped token

A tokenized representation of another cryptocurrency. For example, Bitcoin (BTC) is wrapped to wBTC in order to trade on the Ethereum network. Ethereum's own Ether crypto (ETH) was created before ERC-20 became a standard, and wrapped ETH (wETH) provides compatibility with ERC-20. Holders of wBTC and wETH own BTC and ETH by proxy. A smart contract is created that holds the primary crypto and exchanges it for the wrapped version. See Ethereum token, stablecoin and cryptocurrency.

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