Representation and Custody

This lesson is for enrolled learners

The concept A "wrapped" token is not the original asset — it's a claim, an IOU, on an asset held somewhere else, theoretically backed 1:1 by reserves sitting in a custodian's vault or a bridge contract. The token's name ("Wrapped Bitcoin," "wETH") describes what it's supposed to represent, but the backing mechanism — who or what actually holds the reserve,……

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