Such tokens are like stablecoins, however, they are not tied to fiat in a 1: 1 ratio, but have the same value as the cryptocurrency of which they are assets.
Support for wrapped tokens is backed by the same amount of cryptocurrency they represent.
The transfer of tokens from one blockchain to another is carried out with the help of a custodian. A certain amount of the same blockchain tokens is placed in it, they are blocked and withdrawn from circulation, and in the second blockchain, in which the transfer of tokens is planned, the same number of wrapped tokens is released.
On the reverse transition, the wrapped tokens are burned by the custodian and the original tokens are released.
Smart contracts provide security and protection of transactions.