Explain the Process of ‘Minting’ and ‘Redeeming’ a Wrapped Token

Minting a wrapped token involves a user depositing the underlying asset (e.g. Bitcoin) with a custodian or a smart contract.

The custodian then locks the asset and issues an equivalent amount of the wrapped token (e.g. wBTC) on the target chain. Redeeming is the reverse: the user sends the wrapped token back to the custodian, which burns the token and releases the original underlying asset.