A wrapped asset is a token that exists on a single blockchain to represent the price of a different underlying asset. The wrapped token is matched via smart contract to an equal value of the underlying asset that is locked to create the wrapped token. This ensures that the value of the token is always accurate.
The main value of wrapping assets is reducing transaction time and cost, because wrapped tokens only exist on one blockchain. This means that Decentralized Apps (DApps) can process transactions for a wide array of assets via their wrapped counterparts without interacting with multiple blockchains.