Wrapped tokens are digital assets that represent another cryptocurrency on a different blockchain. They allow for the seamless use of one cryptocurrency within the ecosystem of another blockchain.The most common example is Wrapped Bitcoin (WBTC), which represents Bitcoin on the Ethereum network. To create WBTC, an equivalent amount of Bitcoin is locked in a trust, and an equivalent amount of WBTC is minted on Ethereum. This process ensures that the wrapped token is always backed by real assets.Wrapped tokens enable users to access features like decentralized finance (DeFi) applications, smart contracts, and other services that might not be available on the original blockchain. They effectively bridge different networks, allowing for greater interoperability and flexibility in transactions.Overall, wrapped tokens expand the functionality of cryptocurrencies, making it easier to leverage them in various platforms and applications while maintaining the value of the original asset.