> For the complete documentation index, see [llms.txt](https://docs.transit.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.transit.finance/start-to-use/quick-start-guide/what-is-a-token-swap.md).

# What is a Token Swap?

A Token Swap refers to the process of converting one digital asset into another directly on a blockchain network. Executed through smart contracts, the entire transaction is recorded and verified on-chain without relying on centralized custodians.

Users can swap assets within the same blockchain or perform cross-chain swaps across different blockchains using interoperability technologies. Compared to traditional trading, token swaps offer:

* Decentralization: No third-party intermediaries; assets remain fully under user control.
* Instant Settlement: Once confirmed, the target asset is delivered directly to the user’s wallet.
* Transparency & Traceability: All transaction data is publicly recorded on-chain and can be verified anytime.

Token swaps are one of the most fundamental and widely used operations in blockchain, applicable to investment, payments, liquidity management, and cross-chain transfers.

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