A fungible token is a type of digital asset where each unit is identical and equal in value to every other unit of the same token.

For example, 1 USDC or 1 BTC always equals another 1 USDC or 1 BTC, just like one dollar equals another dollar. This uniformity makes fungible tokens ideal for use as currencies, governance tokens, or representations of other on-chain value (such as yield-bearing or asset-backed tokens).