DeFi & Crypto Technical

Wrapped Token

A tokenised representation of an asset on a different blockchain — e.g., wBTC on Ethereum represents BTC.

Definition

A wrapped token is a tokenised representation of one asset on a different blockchain. Examples: wBTC (Bitcoin on Ethereum), stETH (staked ETH derivatives). The wrapping entity custodies the underlying asset; MiCA scope depends on the wrapper's structure and stability characteristics.