A stablecoin can move across blockchains in three main ways. With native issuance, the issuer's own token exists on each chain, and in a burn-and-mint setup a transfer burns it on the source chain and mints it on the destination. With lock-and-mint bridging, the token is locked in an escrow contract on one chain and a representation is minted on the destination. A wrapped token is that kind of representation when a third party issues it rather than the issuer. The options differ in who issues the token on each chain, what happens to the tokens on the source chain, and which redemption terms apply.
Last updated: October 27, 2026.
How does native issuance work?
The issuer deploys its stablecoin on each supported chain and connects the deployments. A transfer burns the amount on the source chain, a message reporting that burn is verified on the destination, and the destination contract mints the same amount of the same token.
Nothing is held in escrow along the way. The holder ends up with the issuer's token on the new chain, with the issuer's controls and redemption terms. This is the model an OFT uses on every chain where the token is deployed as an OFT. The guide to multichain stablecoin issuance covers it from the issuer's side.
How does lock-and-mint bridging work?
The holder sends tokens to an escrow contract on the source chain. Once the deposit is verified, a contract on the destination chain mints a token that represents the locked amount. To move back, that token is burned and the original is released from escrow.
Who runs the escrow and the destination contract decides what the holder receives. An issuer can run lock-and-mint itself. With the OFT standard, an issuer can use an OFT Adapter, which escrows the existing token on its home chain, while OFT contracts on the other chains mint and burn the issuer's own token. An adapter can also use the token's own mint and burn functions instead of escrow. When a third-party bridge runs lock-and-mint instead, the result is a wrapped token.
What is a wrapped stablecoin?
A wrapped token is issued by someone other than the stablecoin's issuer and represents tokens held in that party's escrow or custody. Its value depends on that escrow and on whoever controls the minting contract, and the issuer's controls and redemption terms may not apply to it. If several bridges wrap the same stablecoin on the same chain, each one issues its own version, and those versions are separate tokens that cannot be redeemed through each other's bridges.
How do the three options compare?
| Question | Native issuance | Issuer lock-and-mint | Third-party wrapped token |
|---|---|---|---|
| Who issues the destination token | The stablecoin issuer | The stablecoin issuer | The bridge or wrapper |
| What happens to the source tokens | Burned on the source chain | Locked in one escrow on the home chain | Locked in the wrapper's escrow or custody |
| What the token relies on | Verification of the burn message | The escrow and verification of transfer messages | The wrapper's escrow and mint authority |
| Issuer controls and redemption | Set by the issuer | Set by the issuer | May not apply |
| Versions on each chain | One canonical token | One canonical token | One per wrapper |
Native issuance and issuer lock-and-mint are set up by the issuer. A holder can only choose among the versions that already exist on a chain. The guide to native vs bridged tokens shows how to tell which one you hold.
FAQ
Is lock-and-mint the same as wrapping?
Not always. Lock-and-mint is the mechanism. When the issuer runs it, the minted tokens are the issuer's own. When a third party runs it, they are a wrapped version.
Does native issuance change total supply?
No. Once a transfer completes, the amount minted on the destination equals the amount burned on the source, so total supply across all chains stays the same.
Can a third party issue a native version of a stablecoin?
No. Minting the issuer's token has to be authorized by the issuer's own contracts. A third party without that authority can only issue a wrapped version.
Plan your stablecoin's chains
For how an issuer can make its stablecoin native on each chain, request a custom briefing.