When you hear wrapped assets, crypto tokens that represent another asset on a different blockchain. Also known as tokenized assets, they let you move value across blockchains without moving the original coin. Think of it like a receipt for your Bitcoin that works on Ethereum—your Bitcoin stays locked up, but you get a version of it that can be used in DeFi apps, lending platforms, or DEXs.
Wrapped assets solve a real problem: most blockchains don’t talk to each other. Bitcoin can’t natively join Ethereum’s DeFi ecosystem, but wBTC, a wrapped version of Bitcoin backed 1:1 by real BTC lets you use Bitcoin in Uniswap, Aave, or Compound. That’s why wBTC is the most traded wrapped asset—it’s Bitcoin in a form that DeFi understands. Same goes for wETH, wrapped Ethereum, which is just ETH with a different name to fit certain smart contract standards. These aren’t new coins—they’re bridges.
But wrapped assets aren’t magic. They need trusted custodians to hold the real asset and issue the wrapped version. If the custodian gets hacked or goes rogue, your wrapped token could lose its backing. That’s why some protocols use multi-sig or decentralized models—like RenBTC or tBTC—to reduce single points of failure. Still, you’re trusting someone, somewhere, to keep your Bitcoin safe. That’s the trade-off for cross-chain access.
That’s why you’ll see wrapped assets pop up in airdrops, exchange reviews, and DeFi guides across this collection. Whether it’s a new token on Sei Network using wrapped assets to attract liquidity, or a crypto exchange listing wBTC as a trading pair, the pattern is clear: interoperability is the next big push in Web3. You don’t need to own Ethereum to use its DeFi tools—you just need a wrapped version of what you already hold.
Below, you’ll find real-world examples of how wrapped assets are used, misused, and misunderstood—from airdrops tied to tokenized real estate to exchanges that treat wBTC like native ETH. Some posts warn about scams pretending to be wrapped tokens. Others break down how platforms like Automata Network or Sphynx Labs rely on them. You’ll also see how regulations around tokenization are starting to shape what’s allowed. This isn’t theory—it’s what’s happening right now, in wallets, on exchanges, and in DeFi contracts around the world.
Discover the top wrapped assets by trading volume in 2025, including wBTC, wETH, and wUSDC. Learn how these digital twins power cross-chain DeFi and why their volume matters more than market cap.