What Are Wrapped Tokens (WETH, WBTC, WSOL)?
What Is a Wrapped Token?â
A wrapped token is a token that represents another coin one-to-one. For example, 1 WETH (Wrapped Ether) is worth 1 ETH, and can be swapped back for it at any time.
Wrapping exists because many apps and smart contracts only work with tokens, not with a network's own coin. ETH is Ethereum's native coin, so it doesn't follow the ERC-20 token standard. WETH does. See What is a Coin? What is a Token?.
Common Wrapped Tokensâ
| Token | Represents | Network | How it's backed |
|---|---|---|---|
| WETH | ETH | Ethereum and EVM networks | Locked in a smart contract, unwrap any time |
| WBNB | BNB | BNB Chain | Locked in a smart contract, unwrap any time |
| WSOL | SOL | Solana | Held in a special token account, unwrap any time |
| WBTC | BTC | Ethereum and others | Real Bitcoin held by a custodian |
There are two kinds:
- Same-network wrapping (WETH, WBNB, WSOL): the original coin is locked in a contract on the same network. It's as safe as that contract.
- Cross-network wrapping (WBTC, and bridged tokens like USDC.e or "ETH on another chain"): someone holds the original coin on its own network, and a token is created on another network. You also rely on that custodian or bridge.
Wrapped vs Original: What's the Difference?â
- Same value, usually. A wrapped token tracks its original one-to-one. A cross-network token can drift if its custodian or bridge has a problem.
- Different asset in Gem Wallet. WETH and ETH show as two separate assets with separate balances.
- Different fees. You still pay network fees in the network's coin. Holding WETH doesn't pay for gas on Ethereum; you need ETH. See Why Do I Need ETH on Base, Arbitrum, and Other Layer 2s?.
- Different addresses on other networks. WBTC on Ethereum isn't Bitcoin. You can't send it to a Bitcoin address, and an exchange may only accept it on the network it supports.
Why Do I Have a Wrapped Token?â
Common reasons:
- A swap or dApp gave you the wrapped version instead of the original coin.
- You bridged a coin from another network. See What's the Difference Between a Bridge and a Cross-Chain Swap?.
- A DeFi app paid out rewards or returned a deposit in its wrapped form.
How Do I Turn It Back into the Original Coin?â
In Gem Wallet, use Swap to swap the wrapped token for its original, for example WETH to ETH. Check the quote before you confirm: a same-network swap like WETH to ETH should come back at close to 1:1, minus network and swap fees. If no quote appears, see What to Do When No Swap Quote Is Available.
Watch Out for Fake Wrapped Tokensâ
Anyone can create a token called "WETH" or "WBTC." Before you buy, receive, or swap one:
- Check that Gem Wallet shows it as verified. See Unverified and Suspicious Tokens in Gem Wallet.
- Compare its contract address with the official one on a block explorer. See What Is a Block Explorer and How Do I Use It?.
- Be suspicious of wrapped tokens that arrive unexpectedly. See What Is an Airdrop, and How Do I Spot a Fake One?.