A non-rebasing wrapper for stETH. The token count stays constant while the amount of stETH redeemable per token changes.
Wrapping converts a rebasing (income-as-you-go) position into a reward-bearing (gain-on-disposal) one, and that changes when tax is recognized. The wrap itself is commonly treated as a transfer because wstETH is redeemable one-for-one for the underlying stETH; a minority view treats it as an exchange.
It changes the timing under common practice: rebasing stETH produces income as units arrive, wstETH defers recognition to disposal. Both positions should be documented and applied consistently.
Source: No IRS guidance as of September 2026; IRS Notice 2014-21 (property treatment)
Last reviewed September 18, 2026. Tax rules change; confirm current law before acting.
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