Wrapped Token
A token on one blockchain that represents an asset from another blockchain, created through a bridge.
In short: A wrapped token is a representation of a token from one blockchain on another, backed 1:1 by the original — native USDC is always preferable to wrapped.
Wrapped tokens exist because blockchains can't natively communicate with each other. If you want to use USDC on a chain where Circle hasn't deployed native USDC, a bridge can "wrap" it: locking your USDC on the source chain and minting a wrapped version on the destination.
Wrapped tokens carry extra risk. If the bridge holding the locked tokens gets hacked, the wrapped versions lose their backing and become worthless. Several major bridge hacks have resulted in hundreds of millions in losses.
For USDC specifically, CCTP eliminates the need for wrapping by burning on the source chain and minting native USDC on the destination. Always prefer native USDC over wrapped versions when possible.
Related Terms
Native Token
A token issued directly on a blockchain by its official issuer, as opposed to a bridged or wrapped version.
Bridging
Moving cryptocurrency from one blockchain to another. For example, moving USDC from Ethereum to Base.
CCTP (Cross-Chain Transfer Protocol)
A protocol that enables native USDC transfers between blockchains by burning tokens on one chain and minting them on another.
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This definition is provided for educational purposes. USDC.org is an independent resource and is not affiliated with Circle Internet Financial.