Non-Native Asset
asset type
Issued or Wrapped Token on a Host Chain ÔÇö Non-Native Asset
A non-native asset is a token that exists on a blockchain but was not originally issued by that blockchainÔÇÖs protocol. These assets are either created via smart contracts (like ERC-20 tokens), wrapped representations of another chainÔÇÖs native token (like $wBTC), or issued by third parties using token standards. They rely on the host chainÔÇÖs infrastructure but are not part of its base protocol.
Use Case: Non-native assets allow other forms of value ÔÇö such as stablecoins, meme tokens, or synthetic assets ÔÇö to operate on blockchains they werenÔÇÖt originally built on.
Key Concepts: Token Issuance, Smart Contracts, Wrapped Assets, Interoperability, IOU Tokens
Examples of Non-Native Assets:
- $USDC ÔÇö ERC-20 stablecoin issued by Circle on Ethereum, Solana, and others
- $wBTC ÔÇö Wrapped version of Bitcoin issued on Ethereum
- $BAD ÔÇö Meme token issued on the XRPL, not native to the protocol
- $EXFI ÔÇö Smart contract token deployed on Songbird and Flare
- $LOOKS ÔÇö Marketplace token deployed via smart contract on Ethereum
Key Differences from Native Assets:
- Native assets are protocol-level tokens (e.g., $ETH, $ADA, $XRP)
- Non-native assets are created via smart contracts or wrapping mechanisms
- They depend on token standards like ERC-20, BEP-20, or XLS-20 for functionality