What Is Wrapped Bitcoin? Leave a Comment / Bitcoin News / By admin Wrapped Bitcoin is a new innovation. is the Ethereum blockchain. decentralized finance. Definate- Wrapped Bitcoin is a new concept, but 1 that could proves the important to a bringing the liquidity to a DeFi. How Do WBTC Tokens Work? use DeFi applications. Find problem! Is to cryptocurrency bridge connecting the Bitcoin and Ethereum. WBTC is an ERC-20 token = backed 1:1 basis with Bitcoin. When Bitcoin is wrapped, then cryptocurrency is reserve by a BitGo Trust.