What is a wrapped token?

A wrapped token stands in for a coin from another chain, such as WBTC for Bitcoin on Ethereum. It is worth the real coin only as long as whoever holds the original keeps it safe and honors redemptions.

Also called wrapped coin or WBTC.

How wrapping works

A custodian or a bridge contract locks the original coin and mints the same amount as a token on another chain. Redeeming burns the token and releases the original.

The risk

If the custodian fails or the bridge is hacked, the token can lose its backing. Native coins held through THORChain’s vaults avoid that extra layer.

In Redacted

Private balances in Redacted hold native coins as THORChain secured assets, not wrapped tokens, so a private Bitcoin balance is backed by real Bitcoin.

How THORChain works →

Related terms

Secured assetsSecured assets are native coins deposited into THORChain’s vaults and held one to one on THORChain, such as BTC-BTC for Bitcoin. Apps use them for trading, lending and more, and they can be withdrawn back to their home chain as the real coin.Native cross-chain swapA native cross-chain swap trades a coin on one chain for a coin on another, for example Bitcoin for Ether, by moving the real coins between vaults instead of minting wrapped copies on a bridge.THORChainTHORChain is a network that swaps native coins across chains, such as Bitcoin for Ether, with no bridges and no wrapped tokens. The coins sit in vaults on their home chains, secured by about 100 independent node operators.

Sources: What is wrapped ether (WETH)?, ethereum.org

Updated October 7, 2026. All terms