Glossary · Assets

What is Wrapped token?

A wrapped token is an asset represented on a chain it was not born on: Bitcoin locked in custody with WBTC minted on Ethereum, or Bitcoin held natively with cbBTC issued on Base. One unit of the wrapper claims one unit of the original, redeemable by the custodian or minter.

Wrapping is how liquidity moves between ecosystems that cannot talk to each other. The questions are always who holds the original and what attests the backing; the answers differ by wrapper, which is why each has its own page.

Wrapped token on U.CASH

Wrapped assets trade as first-class tokens on U.CASH, with the custodian and the verified contract on each asset page: Wrapped Bitcoin, Coinbase Wrapped BTC, and the chain flavors under the variants system.

See also

Wrapped BitcoinTokens across chains

Wrapped token: FAQ

Is a wrapped token as good as the original?
On its own chain it is the tradable form of the original; cross-chain, it is a claim on a custodian. The custodial risk is real and named: read the asset page before sizeable holdings.
Why wrap Bitcoin at all?
Because Ethereum's DeFi cannot hold native Bitcoin. The wrapper gives Bitcoin's liquidity to the EVM world; the redemption window gives it back.
Keep reading

The glossary, A to Z

Every term behind the rails, the assets, and the settlement.