Wrapped tokens offer a way to circumvent the lack of interoperability between different blockchains. The wrapping of a token happens when the original asset is put into a “wrapper” and deployed on a different blockchain. With it being wrapped, the cryptocurrency can now be used on a blockchain where it previously wasn’t available. One example of a wrapped token would be Wrapped Bitcoin (WBTC). It is an ERC-20 version of Bitcoin, which allows it to be used on protocols based on Ethereum. Watch this video to learn more about Wrapped tokens.
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