Tokenized ETH

Definition ∞ Tokenized ETH refers to representations of Ethereum’s native cryptocurrency, Ether (ETH), that exist on other blockchain networks or as wrapped tokens on Ethereum itself. These tokenized versions allow ETH to be used in environments or protocols that might not natively support the original asset, enhancing its interoperability and utility across the broader digital asset ecosystem. Examples include wETH (wrapped ETH) on Ethereum for DeFi protocols, or ETH represented on sidechains. It facilitates broader participation and liquidity.
Context ∞ The prevalence of tokenized ETH highlights the growing need for cross-chain compatibility and expanded utility within the decentralized finance landscape. These tokenized assets enable ETH holders to access diverse applications and yield-generating opportunities beyond the native Ethereum blockchain. The security and redeemability of these tokenized versions remain important considerations for users and protocol developers.