Wrapping

Wrapping is the process of grouping two or more on-chain assets of any standard into a single unified asset, also of any standard. This means that any real-world asset class, such as art, real estate, etc. can be combined to produce a single overarching wrapped token.

While the number of assets that can be wrapped in a single token is unlimited, it is important to note you must own all assets that you intend to wrap.

Equally, a single asset can be wrapped to transform its properties - for example, by adding a compliance layer or changing its ERC standard.

The main benefits of wrapping include:

1. Interoperability across any blockchain standards.
2. Creating diversified products that hold many different types of assets.

Supported Standards

The Token Market Infrastructure (TMI) can wrap tokens of most standards, as long as they have been deployed on an EVM chain.

Unwrapping

Unwrapping is the process by which an investor exchanges their fractional ownership for a portion of the underlying assets that back the fraction. Basically, it allows investors to revert a tokenized asset back to its original state or separate it into its constituent components. This mechanism ensures that each fraction is not just a token, but a representation of real, tangible assets held within a wrapped product.

Wrapping can be reversed wholly or partially. If reversed wholly, the resulting individual tokens are sent to the wallet of the owner of the previously wrapped asset (or any other wallet indicated by the owner). If reversed partially, only the assets subject to unwrapping are sent to the owner’s wallet; the remaining assets do not move.