Similar to how fiat-collateralized stable coins can be used to represent different fiat currencies on-chain, including USD, GBP, EUR etcetera, they can also be issued on multiple chains. Tether (USDT), for example, is issued on a number of chains including the Ethereum blockchain as an ERC-20 token as well as on the Tron blockchain as a TRC-20 token. It’s also been created on the Solana, EOS, Algorand blockchains etcetera. While transacting with such a multi-protocol coin, pay attention to the destination addresses, because, USDT on the Tron blockchain cannot be held in an Ethereum wallet or vice versa.
While multi-protocol tokens are issued or created on new chains with a new supply, expanding the initial total supply - and for fiat-collateralized stable coins, these “new mints” are fully backed by cash reserve - wrapped coins do not increase the initial total supply of the existing coin. Usually denoted as wBTC or wETH, they are designed for the purpose of cross-chain or cross-protocol interoperability. A custodian, which could be a smart contract, centralized bridge or institution manages the burning and minting of the token as they move from one chain to the other.
While Multi-protocol tokens like USDT maintain their ticker across chains, wrapped coins do not, they are usually indicated by a lowercase “w” prefix to the ticker of the original coin ticker.
Tokens can also be wrapped to other chains.