# Wrapped BNB (WBNB) > Wrapped BNB (WBNB) is a BEP-20 token on the BNB Smart Chain (BSC) that is pegged 1:1 to Binance Coin (BNB). - Canonical URL: https://iq.wiki/wiki/wrapped-bnb-wbnb - Categories: Cryptoassets - Tags: Layer 1, BNB Chain, Infrastructure - Created: 2025-06-11T22:03:54.581Z - Last updated: 2025-06-11T22:31:32.673Z - Source: IQ.wiki — the world's largest blockchain and crypto encyclopedia (https://iq.wiki) --- **Wrapped BNB (WBNB)** is a tokenized version of [Binance](https://iq.wiki/wiki/binance) Coin ([BNB](https://iq.wiki/wiki/binance-coin)) on the [BNB Smart Chain](https://iq.wiki/wiki/binance-smart-chain) (BSC) that conforms to the [BEP-20](https://iq.wiki/wiki/bep-20) standard. Its primary purpose is to enable BNB to be used within [decentralized applications](https://iq.wiki/wiki/decentralized-application) (dApps) and [decentralized finance](https://iq.wiki/wiki/defi) (DeFi) protocols on the BSC network. ## Overview Wrapped BNB functions as a wrapped token, meaning its value is pegged 1:1 to the value of the underlying asset, which in this case is BNB. This wrapping process makes [BNB](https://iq.wiki/wiki/binance-coin) compatible with the [BEP-20](https://iq.wiki/wiki/bep-20) token standard used on the [BNB Smart Chain](https://iq.wiki/wiki/binance-smart-chain), allowing it to interact with smart contracts and participate in activities like trading on [decentralized exchanges](https://iq.wiki/wiki/decentralized-exchange) (DEXs), [yield farming](https://iq.wiki/wiki/yield-farming), and lending protocols. The creation of WBNB addresses the limitation of the native [BNB](https://iq.wiki/wiki/binance-coin) token, which was initially designed primarily for use on the [Binance](https://iq.wiki/wiki/binance) Chain for trading and exchange functions. By wrapping BNB into WBNB, its liquidity can be utilized [across](https://iq.wiki/wiki/across) different [blockchains](https://iq.wiki/wiki/blockchain) and within the BSC ecosystem's [DeFi](https://iq.wiki/wiki/defi) applications. [\[1\]](#cite-id-NCZaehSOtx) [\[2\]](#cite-id-0gElebEdr3) [\[3\]](#cite-id-3SzLZtsgkc) [\[4\]](#cite-id-Luen8RteOm) [\[5\]](#cite-id-WrkTLRcpl1) [\[6\]](#cite-id-ufd1nqTBkl) [\[7\]](#cite-id-UYFOZvgt70) ## History Wrapped BNB was introduced as part of the [Binance](https://iq.wiki/wiki/binance) platform's expansion, particularly with the launch of the [Binance](https://iq.wiki/wiki/binance) Smart Chain (later rebranded to BNB Smart Chain) in September 2020. The concept was announced by [Changpeng Zhao](https://iq.wiki/wiki/changpeng-zhao), the founder and CEO of [Binance](https://iq.wiki/wiki/binance). The development aimed to enhance the functionality of [BNB](https://iq.wiki/wiki/binance-coin) beyond simple [cryptocurrency](https://iq.wiki/wiki/cryptocurrency) trading and enable its use in the growing [DeFi](https://iq.wiki/wiki/defi) space on BSC. [\[1\]](#cite-id-NCZaehSOtx) [\[2\]](#cite-id-0gElebEdr3) ## Technology WBNB operates on the BNB Smart Chain and adheres to the [BEP-20](https://iq.wiki/wiki/bep-20) token standard. The BEP-20 standard is a technical specification for tokens on BSC, similar to [Ethereum's](https://iq.wiki/wiki/ethereum) [ERC-20](https://iq.wiki/wiki/erc-20) standard, which defines how tokens are spent, how they are authorized to be spent by another contract, and how they interact with other tokens and [dApps](https://iq.wiki/wiki/decentralized-application). The process of converting [BNB](https://iq.wiki/wiki/binance-coin) to WBNB is known as "wrapping," and converting WBNB back to BNB is called "unwrapping" or "redeeming". This conversion typically involves using a bridge service or a [smart contract](https://iq.wiki/wiki/smart-contract) that locks the original BNB on the native chain and issues an equivalent amount of WBNB on the BNB Smart Chain. Custodians, which can be smart contracts or multi-signature wallets, are involved in managing the locked assets. [\[1\]](#cite-id-NCZaehSOtx) [\[2\]](#cite-id-0gElebEdr3) [\[3\]](#cite-id-3SzLZtsgkc) [\[4\]](#cite-id-Luen8RteOm) [\[5\]](#cite-id-WrkTLRcpl1) [\[6\]](#cite-id-ufd1nqTBkl) [\[7\]](#cite-id-UYFOZvgt70) ## Use Cases WBNB serves several key functions within the BNB Smart Chain ecosystem and beyond: * **DeFi Participation:** WBNB allows users to engage with various [DeFi](https://iq.wiki/wiki/defi) protocols on BSC, including [decentralized exchanges](https://iq.wiki/wiki/decentralized-exchange) (DEXs) like [PancakeSwap](https://iq.wiki/wiki/pancakeswap), lending platforms like [Venus](https://iq.wiki/wiki/venus-protocol) and [Aave](https://iq.wiki/wiki/aave), and [yield farming](https://iq.wiki/wiki/yield-farming) applications. [\[1\]](#cite-id-NCZaehSOtx) [\[4\]](#cite-id-Luen8RteOm) [\[5\]](#cite-id-WrkTLRcpl1) [\[6\]](#cite-id-ufd1nqTBkl) * **Cross-Chain Transactions:** By being a wrapped token, WBNB facilitates the movement and use of [BNB's](https://iq.wiki/wiki/binance-coin) value on different [blockchain](https://iq.wiki/wiki/blockchain) networks that support wrapped tokens and cross-chain bridges. [\[1\]](#cite-id-NCZaehSOtx) [\[2\]](#cite-id-0gElebEdr3) [\[5\]](#cite-id-WrkTLRcpl1) [\[6\]](#cite-id-ufd1nqTBkl) * **Liquidity Provision:** WBNB is used in [liquidity pools](https://iq.wiki/wiki/liquidity-pool) on [DEXs](https://iq.wiki/wiki/decentralized-exchange), allowing users to earn fees by providing WBNB and other tokens for trading pairs. [\[1\]](#cite-id-NCZaehSOtx) [\[4\]](#cite-id-Luen8RteOm) [\[6\]](#cite-id-ufd1nqTBkl) * **Smart Contract Interaction:** As a BEP-20 token, WBNB can interact with complex smart contracts, enabling its use in a wide range of dApps. [\[1\]](#cite-id-NCZaehSOtx) [\[4\]](#cite-id-Luen8RteOm) * **Developer Use:** Developers can utilize WBNB when building protocols, digital assets, and NFTs on the BNB Smart Chain. [\[1\]](#cite-id-NCZaehSOtx) The wrapping of BNB into WBNB offers several benefits: * **Interoperability:** Enables the use of [BNB's](https://iq.wiki/wiki/binance-coin) value on [blockchain](https://iq.wiki/wiki/blockchain) networks other than its native chain, particularly within the BNB Smart Chain ecosystem. [\[1\]](#cite-id-NCZaehSOtx) [\[2\]](#cite-id-0gElebEdr3) [\[4\]](#cite-id-Luen8RteOm) [\[5\]](#cite-id-WrkTLRcpl1) [\[6\]](#cite-id-ufd1nqTBkl) * **DeFi Access:** Provides access to the diverse range of [DeFi](https://iq.wiki/wiki/defi) applications and services available on BSC. [\[1\]](#cite-id-NCZaehSOtx) [\[4\]](#cite-id-Luen8RteOm) [\[5\]](#cite-id-WrkTLRcpl1) [\[6\]](#cite-id-ufd1nqTBkl) * **Ease of Conversion:** The process of exchanging [BNB](https://iq.wiki/wiki/binance-coin) for WBNB and vice versa is designed to be straightforward and quick. [\[1\]](#cite-id-NCZaehSOtx) [\[4\]](#cite-id-Luen8RteOm) [\[5\]](#cite-id-WrkTLRcpl1) [\[3\]](#cite-id-3SzLZtsgkc) * **Cost-Effectiveness (for large transactions):** While wrapping/unwrapping incurs [gas](https://iq.wiki/wiki/gas) fees, using WBNB for transactions within BSC can be more cost-effective than transacting the native asset on its original, potentially more expensive, network for certain use cases. [\[2\]](#cite-id-0gElebEdr3) * **Enhanced Security (via private key control):** Once wrapped, the user controls the private key for the WBNB token, which is separate from the native BNB asset held by the custodian. [\[2\]](#cite-id-0gElebEdr3) ## Team Wrapped BNB was created in connection with the [Binance](https://iq.wiki/wiki/binance) platform, which was founded by [Changpeng Zhao](https://iq.wiki/wiki/changpeng-zhao). Changpeng Zhao is a Chinese-Canadian entrepreneur known as the founder and CEO of [Binance](https://iq.wiki/wiki/binance). [\[2\]](#cite-id-0gElebEdr3)