A wrapped token is a token that represents another asset held in a contract or by a custodian. The wrapped version can usually be redeemed for the original under the wrapper's rules. Wrapping is used either to give an asset a different token format on the same chain or to create a representation of it on another chain.
Last updated: September 25, 2026.
Why are tokens wrapped?
An asset is wrapped when it needs to work somewhere its original form cannot. The two common cases differ in where the wrapped token lives:
| Type of wrapping | What happens | Example |
|---|---|---|
| Same-chain | The asset is deposited in a contract that issues a token in a standard format | A network's gas token wrapped into a standard token, such as WETH |
| Cross-chain | The asset is locked or held in custody on one chain, and a third party such as a bridge issues a representation on another | A token from one network represented on a second network |
Same-chain wrapping changes the format so that applications built for a token standard can use the asset. Cross-chain wrapping changes the location of the representation, while the original stays locked on its home network.
What does a wrapped token depend on?
A wrapped token's value depends on the original asset still being held and redeemable. The holder relies on whoever controls the locked asset, whether that is a contract, a custodian, or a bridge.
For a cross-chain representation, the holder also relies on how the bridge verifies transfers. A wrapped copy is a different token from the issuer's own, so issuer controls and redemption may not apply to it. Native vs bridged tokens compares these models.
Can a token move across chains without being wrapped?
Yes, when the issuer supports a native path. Under the OFT standard, a transfer debits the source network and credits the destination, and the issuer deploys the token contract on each network, so no third-party representation is created. For a token already live on one chain, an OFT Adapter connects the existing token contract to the issuer's deployments on other networks, using either escrow or delegated mint and burn.
Cross-chain token standards describes the main approaches side by side.
FAQ
Is a wrapped token worth the same as the original?
Most wrapped tokens are designed to be redeemable one to one, although some wrappers convert at a changing rate. The market price can also differ if redemption is delayed, restricted, or the backing is in question.
How do I unwrap a token?
By redeeming it through the contract or service that issued the wrapped version, under that wrapper's rules. Contract wrappers such as WETH let any holder redeem, custodial wrappers can limit redemption to approved parties, and cross-chain wrappers release the original on its home network.
Is a bridged token always a wrapped token?
Not always. Some bridged tokens are wrapped representations, while native cross-chain tokens move the issuer's own supply between networks.
Check which token arrives
For cross-chain token concepts and supported integration paths, start with the LayerZero developer resources.