--- title: Fungible Token url: "https://www.unknowngravity.com/en/glosario/token-fungible" site: Unknown Gravity published: "2025-06-07T15:16:18+00:00" modified: "2026-10-15T21:18:40+00:00" language: en description: A token interchangeable with any identical one, like a coin. Learn how fungible tokens work and how they differ from NFTs. section: "Home > Fungible Token" --- # Fungible Token GLOSSARY · BLOCKCHAIN & WEB3 What a fungible token is: interchangeable, identical units (like money), the ERC-20 standard and how it differs from an NFT. Reviewed on October 15, 2026 A fungible token is a type of digital asset issued on blockchain whose units are interchangeable, divisible and homogeneous, that is, each token has the same value, properties and function as another of the same type. This feature makes it the ideal representation for coins, points, credits, stablecoins and digitized financial assets. ## What is a fungible token? A **fungible token** is a type of **digital asset issued on blockchain** whose units are **interchangeable, divisible and homogeneous**, that is, each token has the **same value, properties and function as another of the same type**. This feature makes it the ideal representation for coins, points, credits, stablecoins and digitized financial assets, allowing it to be used in payments, exchanges, governance and internal functions of Web3 protocols. Fungibility is essential so that tokens can be used as an **efficient medium of exchange**, since there is no need to distinguish between individual tokens. For example, an ERC-20 token such as USDT, DAI, or LINK allows a user to transfer any unit without worrying about its specific origin or history. Technically, fungible tokens are usually implemented using standards such as: - **ERC-20** on Ethereum and EVM-compatible networks. - **BEP-20** on BNB Chain. - **SPL** on Solana.\ These standards define functions such as `transfer`, `balanceOf`, `approve` and `transferFrom`, which guarantee their interoperability with wallets, exchanges, DeFi platforms and smart contracts. In addition, fungible tokens can represent: - **A network's native cryptocurrencies** (e.g. ETH, MATIC, SOL). - **Stablecoins linked to real assets** (e.g. USDC, EURC). - **Rights of use or participation**, such as governance tokens. - **Tokenized assets**, such as gold, energy or fractional business shares. Its design must take into account principles of **tokenomics**, **legal regulation**, **liquidity**, and **usage model within the ecosystem**, since their behavior can directly affect the viability of a decentralized protocol or product. Learn more: [What Is Blockchain and How Does It Work? Types, Real Examples and Limits](/en/articulos/que-es-blockchain-y-como-funciona) ## Explained simply A **fungible token** is like a **digital currency**: they are all worth the same and you can swap one for another without noticing any difference. If you have 1 token and someone else gives you another one just like it, it's as if nothing changed. They are used for payments, exchanges or representing value, just like physical coins or banknotes. ## Fungible Token: key points - Represents digital units that are identical and interchangeable - Ideal for payments, rewards, coins, stablecoins or governance tokens - Compatible with standards such as ERC-20 (Ethereum), BEP-20 (BNB Chain), SPL (Solana) - All units have the same value and functionality - Easily integrates with DeFi, dApps, exchanges and wallets ## Fungible Token: advantages - **High liquidity and ease of exchange** - **Widespread standards, well supported by the Web3 industry** - **Ideal for representing economic value, participation or use within platforms** - **Divisibility**, allowing fractions of use or investment - **Compatible with automation mechanisms and smart contracts** ## Fungible Token: disadvantages - **It does not allow you to identify unique assets**, as is the case with NFTs - **Higher exposure to market manipulation if it lacks solid backing** - **May require regulatory compliance if used as a financial security** - **It does not provide visual or narrative differentiation between units** - **It can generate oversupply and loss of value if its issuance is not well managed** RELATED CONCEPTS [Token](/en/glosario/token) [ERC-20](/en/glosario/erc-20) [Cryptocurrency](/en/glosario/criptomoneda) [Security Token](/en/glosario/security-token) KEEP LEARNING [What Is Blockchain and How Does It Work? Types, Real Examples and Limits](/en/articulos/que-es-blockchain-y-como-funciona) [What is asset and company tokenization: a complete guide](/en/articulos/what-is-asset-tokenization) [How to create your own blockchain-based cryptocurrency](/en/articulos/crear-tu-propia-criptomoneda-blockchain) [Comparison of smart contracts programming languages](/en/articulos/lenguajes-programacion-smart-contracts) RELATED SERVICES [Token development](/en/servicios/desarrollo-de-tokens) [Token issuance](/en/servicios/emision-de-tokens) [Tokenomics design](/en/servicios/tokenomics) [Web3 development services](/en/servicios/desarrollo-web3) [Cryptocurrency development](/en/servicios/desarrollo-de-criptomonedas) [Full glossary](/en/glosario) This entry is informative. It is not legal, tax or investment advice. The rules cited change: check the current version in each country’s official gazette (for Spain and the EU, [BOE](https://www.boe.es) and [EUR-Lex](https://eur-lex.europa.eu)).