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Definition: wrapped token

A tokenized representation of another cryptocurrency. Wrapped tokens enable tokens to cross blockchain platforms. Somewhat like a stablecoin, a wrapped ERC-20 token is pegged to the price of the original coin. For example, Wrapped Bitcoin (WBTC) and Wrapped Ethereum (WETH) are tokenized versions of Bitcoin (BTC) and Ethereum (ETH) respectively. Holders of WBTC and WETH own BTC and ETH by proxy. See Ethereum token, stablecoin and cryptocurrency.