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Wrapped Token

A wrapped token is a cryptocurrency that represents another asset on a different blockchain. It is backed one-to-one by the original asset and allows that asset to be used in decentralized applications on a blockchain it was not originally native to. For example, wrapped Bitcoin (WBTC) enables Bitcoin to be used on the Ethereum network. Wrapped tokens are created and managed through smart contracts or custodial arrangements. They maintain the value of the underlying asset while increasing interoperability.