Overview
A wrapped asset is a tokenized representation of an asset on another chain. It enables cross-chain use. Wrapped assets are issued by bridges.
How It Works
The original asset is locked on its home chain, and a wrapped token is minted on the destination chain. Redeeming burns the wrapped token. This represents ownership.
Why It Matters
Wrapped assets make assets usable across chains, expanding liquidity. They introduce bridge and custody risk. They are central to cross-chain activity.
Related Concepts
Wrapped assets relate to Bridges, Cross-Chain, and Locked assets. They represent Assets on other chains.