Wrapped BNB (WBNB) is a tokenized version of Binance Coin (BNB) that is compatible with the Ethereum blockchain. It allows BNB holders to participate in decentralized finance (DeFi) applications and use their BNB assets on the Ethereum network. WBNB is created by depositing BNB into a smart contract, which then mints an equivalent amount of WBNB tokens. This enables users to trade, lend, and borrow BNB on decentralized exchanges and platforms within the Ethereum ecosystem.