Wrapped asset

A wrapped asset solves a boundary problem: an asset native to one ledger cannot exist on another, so a representative token is issued instead. The original asset is deposited with a custodial or contractual arrangement, an equivalent amount of the wrapped token is minted on the destination network, and redemption burns the token to release the original. Supply on one side mirrors reserves on the other.

Wrapping is what lets an ecosystem trade value it did not issue. On Canton Network, CBTC represents Bitcoin held in reserve, giving Canton applications an asset that tracks BTC while behaving as a native Daml instrument: it settles atomically, composes with other Canton contracts, and inherits the network's privacy properties. USDCx follows the same logic for dollar value, backed by USDC.

The honest framing is that a wrapped asset is a claim, not the thing itself. Its value rests on the reserve being real, the custodian being sound, and redemption functioning; the market prices doubts about any of these as a discount to the original. Before trading wrapped assets on any venue, OneSwap included, know who holds the backing and how you would redeem.