Wrapped Crypto Tokens, Explained

Because Ethereum is the biggest DeFi ecosystem, wrapped tokens are often those hosted on other blockchains but are also stablecoins that are pegged to the dollar. Many of the first wrapped assets were, in fact, fiat-backed stablecoins, such as tokens with prices pegged to the dollar — Tether, Coinbase’s USDC or TrueUSD.

There are also euro, yen, yuan and countless other fiat stablecoins that are mostly based on the Ethereum blockchain. This makes it as easy to deposit dollars into DeFi applications and blockchain wallets as it does to have a reliable counter currency providing traders relief from crypto asset volatility.

Timeline of Ethereum, Tether, Trueusd, Usd-coin