Internet Computer Unveils Decentralized Wrapped Assets for Major Cryptos

May 22, 2025 – Internet Computer (ICP) has taken a big step toward making interoperability between blockchains a reality and vastly improving the end-user experience.

They have indeed built the bridge that many claims cannot be built. Developers can now issue wrapped, on-chain versions of all the major coins: Bitcoin (ckBTC), Ethereum (ckETH), Tether (ckUSDT), and USD Coin (ckUSDC). Said tokens are called “ck” tokens because they remain 1:1 pegged to their original, off-chain counterparts. Unlike many similar compound products, these do not involve any central custodians or risky third-party bridges.

One of the most innovative parts of the new wrapped tokens is the manner in which they are connected to the Internet Computer blockchain. This is different from most wrapped assets, which depend on centralized middlemen or protocols that third parties operate. Instead, the Internet Computer has a decentralized mechanism that is part and parcel of its platform. This allows for a much higher level of security, and it is probably much more trustable as well.

Consider Bitcoin (BTC) as an example. When a user sends BTC to the Internet Computer, it is locked in a secure address on the Bitcoin blockchain. At the same moment, an equivalent amount of ckBTC (the Internet Computer’s version of wrapped Bitcoin) is issued on the ICP network. This entirely decentralized process avoids the vulnerabilities and risks that have traditionally compromised bridge protocols, wherein centralized custodians of funds have often been the targets of hackers and exploits.

Ensuring that each wrapped token has a real-world counterpart means that ICP guarantees the preservation of each digital asset’s true value. This was relatively hard to achieve in the past across different blockchain systems. But it also means that each wrapped token can be redeemed or transferred back to its native blockchain with ease and, thanks to ICP, a liquidity that has—to this point—eluded all but a few cross-chain systems.

The wrapped tokens of ICP have quite a few practical benefits that make them attractive to users, especially in regard to decentralized finance, gaming, and microtransactions. One of the most alluring aspects is the speed of transactions. Unlike many traditional blockchain networks, where transactions can take several minutes or even hours to confirm, ICP processes transactions in less than one second. This low latency makes it an ideal choice for applications that require real-time interaction, such as gaming platforms, or for decentralized applications (dApps) that operate in time-sensitive environments.

Along with rapid transactions, the price of moving these wrapped assets is very low. Transaction fees on ICP are just a fraction of a cent, and it is cost-effective for any sort of microtransaction. That is something traditional networks like Bitcoin and Ethereum don’t do too well. They often bog down when trying to handle those sorts of transactions, and then the user ends up paying a high gas fee. But here we are in the Internet Computer ecosystem, trying to interact with wrapped versions of those same assets, and doing so in a more efficient ecosystem.

In addition, these enveloped assets are completely compatible with the burgeoning an ecosystem of ICP-based decentralized applications. Users can trade them on decentralized exchanges, engage with DeFi protocols, or wander the wild world of decentralized apps—essentially, do any of the things that the increasingly nifty ICP network permits—without leaving the network or converting the assets back to their home chains.

With these fresh wrapped tokens, ICP sees itself as a big cheese in the continuing evolution of blockchain technology. It’s not just that you’re able to use major assets like BTC and ETH within its ecosystem—but that you can do so natively, in a way that overcomes many of the blockchain-y limitations traditional, non-ICP smart contracts suffer from. Developers working within the new decentralized interoperability are creating next-gen dApps. And Interchain’s the place to do it.

In addition, wrapped tokens on ICP mean more than just transaction efficiency; they represent the dawn of blockchain interoperability. With the deluge of new blockchains and digital assets, ICP’s decentralized bridging solution offers a model other platforms may envy. By enabling cross-network, entity-free transfers, ICP is not just making interoperability happen; it’s helping shape the secure, transparent, and scalable blockchain ecosystem we all want.

Wrapped Bitcoin, Ethereum, and stablecoins like Tether and USDC are clear signs that ICP is very much an innovation engine for blockchain technology. These digital assets are lifeblood to the decentralized internet that the ICP team is building. They are core enablers of its vision of a future where users and applications can interact seamlessly without the sort of traditional blockchain constraints that so often inhibit that ideal.

To sum up, the direct asset launch on the Internet Computer is a significant event not just for the ICP ecosystem, but for the blockchain industry as a whole. Its direct launch facility is an unprecedented addition to the ICP offering, and it seems, at a first glance, to put the Internet Computer in direct competition with Ethereum.

This could be a big moment; wrapped tokens could be used on the direct launch facility to use any asset, not just wrapped ICP, as a secure way to transact on the Internet Computer.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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