Wrapped: The Cross-Chain Crypto Solution

Wrapped tokens are cryptocurrencies that represent a digital version of another coin or token on a different blockchain. For instance, Wrapped Bitcoin (WBTC) is an ERC-20 token on Ethereum fully backed by actual Bitcoin. The main purpose of Wrapped is to enable cross-chain compatibility, letting assets like Bitcoin, Litecoin, or Zcash be used in ecosystems that don’t natively support them, such as DeFi protocols on Ethereum, Polygon, or Binance Smart Chain.

Wrapped token transactions are easily traceable using blockchain explorers. For example, WBTC can be tracked on Etherscan, Wrapped Solana on Solscan, and Wrapped Tron on Tronscan. Wrapped tokens utilize the blockchain on which they are issued: Ethereum (ERC-20), Binance Smart Chain (BEP-20), Polygon (MATIC), and others.

You can store Wrapped tokens in any wallet supporting the respective token standard (such as MetaMask or Trust Wallet for ERC-20/BEP-20). For cold storage, hardware wallets like Ledger or Trezor, or offline-generated private keys are recommended. Major exchanges like Binance, Coinbase, KuCoin, and Kraken support trading and storage of popular Wrapped tokens.

Wrapped tokens' prices are typically pegged 1:1 to the underlying asset (e.g., WBTC = BTC). However, liquidity, fees, and trading volume depend on the platform and DeFi demand. The total market cap of WBTC, USDT (wrapped forms), WETH, and other Wrapped tokens exceeds billions of dollars, making them among the most popular tokens on Ethereum and similar networks.

Wrapped tokens exist across various networks: Ethereum, Binance Smart Chain (BSC), Polygon, Solana, Avalanche, Tron, and more. Within these networks, you’ll find Wrapped versions of Bitcoin, Ethereum, Litecoin, Zcash, Bitcoin Cash, Dogecoin, and even stablecoins such as Wrapped USDT and Wrapped DAI.

To perform a Wrapped token transaction, you need to pay the standard network fee where the token exists. For instance, Ethereum gas fees may range from $1 to $20+ during high congestion. On Polygon and BSC, fees are generally much lower—often under $0.1. You’ll need a wallet supporting the respective network and a small amount of its native coin to cover transaction fees.

The key feature of Wrapped tokens is cross-chain liquidity and interoperability. This allows assets like Bitcoin or Litecoin to be used in all the benefits of DeFi: farming, lending, DEX trading (Uniswap, PancakeSwap). Wrapped tokens are always backed 1:1 by the original asset, unlike most other tokens. They play a vital role in the evolution of multi-blockchain infrastructure.