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:What is Token Exchange

Last Updated:Oct 22, 2026

Overview

Token Exchange is an authentication and authorization mechanism based on the RFC 8693 standard protocol. It allows a client to use an existing security token (subject_token) to obtain a new security token from the authorization server. This feature applies to use cases that require identity propagation, delegated authorization, and least-privilege access.

Technical definition

Token Exchange is an extension specification of the OAuth 2.0 protocol (RFC 8693). It defines a standard HTTP POST endpoint (typically /oauth/token) that allows a subject (Subject/Client) to submit an existing security token (subject_token) to the authorization server (Authorization Server, AS) in exchange for a new security token (access_token or another type).

The token exchange mechanism enables a client to obtain a new token with a different audience, scope, or token type while preserving the identity information of the original subject.

Core capabilities

Capability

Description

Security benefit

Scope restriction

Obtain a new token with a narrower scope to enforce the principle of least privilege

Limits the impact of a token leak

Token type conversion

Convert between different token formats (such as JWT to SAML)

Enables interoperability between different systems

Identity delegation

Perform operations on behalf of different identities, with support for identity chain propagation

Enables fine-grained identity management and audit traceability

Cross-domain trust

Establish secure collaboration between different trust domains

Enables secure integration between independent systems

Core concepts

Terms

Term

Description

Authorization server

The trust center in the OAuth 2.0 protocol that is responsible for authentication, authorization grants, and token issuance. In this topic, it refers to IDaaS.

Client

The application or service that initiates a token exchange request

Subject

The independent identity entity on whose behalf business operations are actually performed. In this topic, it refers to an account.

Subject token

A security token that represents the identity of a subject and is used to prove the identity to the authorization server

Audience

The value of the aud (audience) field in the payload of a JWT token. It identifies the intended recipient or service of the token.

Scope

A permission control mechanism used to define the range of accessible resources and the access boundary

Token exchange

A request that uses a subject token to obtain a security token with a new audience and scope, based on the RFC 8693 standard protocol

Token exchange semantics

Token Exchange supports two semantic modes:

Semantic type

Technical definition

Audit characteristics

Impersonation semantics

The newly generated token fully represents the identity of the original token owner. The identity of the initiator is not retained.

Audit logs show that the original token owner performed the operation directly

Delegation semantics

The newly generated token contains the identity information of both the original token owner and the initiator, forming an identity invocation chain

Audit logs record the identities of both the actual operator and the authorizer

Note

IDaaS currently supports token exchange based on impersonation semantics only.

Scenarios for impersonation semantics: A backend service performs operations on behalf of a user, and the identity of the service itself does not need to be retained. For example, a mail server sends email on behalf of a user, and the recipient can see only the user as the sender.

Scenarios for delegation semantics: Multi-layer service invocation in a microservices architecture. For example, Service A calls Service B, and Service B then calls Service C. Service C needs to know the identities of both the initial requesting user and the intermediate service for purposes such as throttling and auditing.

How it works

Workflow

Workflow description

Phase

Steps

Description

Phase 1: Obtain the initial token

1-3

The frontend service logs on through SSO to obtain an access token for Resource Server A, and uses the token to request protected resources

Phase 2: Initiate a token exchange request

4

Resource Server A acts as a client and sends a token exchange request to the authorization server

Phase 3: Authorization server processing

5-7

The authorization server verifies the validity of the subject token, checks the access policy, and determines whether to issue a new token

Phase 4: Use the new token

8-10

Use the newly issued token to access Resource Server B and obtain protected resources

Use cases

Agent identity security scenario

In enterprise Agent service integration scenarios, Token Exchange enables secure identity propagation and delegated authorization.

Scenario description

An enterprise has deployed a travel planning assistant Agent and an HR MCP service. When an employee accesses the Agent through the travel system to plan a trip, the travel planning assistant needs to access the HR MCP service to obtain data such as the employee's job level and travel budget.

Service node mapping

Token exchange workflow

Agent identity security scenario

Frontend service (Front Service)

Travel system

Resource Server A

Travel planning assistant Agent

Resource Server B

HR MCP service

Authorization server

IDaaS authorization server

Differences from M2M access

Token Exchange securely propagates authorization to downstream services, such as the HR MCP service, while retaining the subject identity information of the business operation (the employee user). The employee does not need to perform secondary authentication or authorization.

The new token issued by token exchange (AT_obo) fully retains the authorization propagation chain: travel system → travel planning assistant Agent → HR MCP service. This supports complete traceability and audit capabilities.

Limits

Limit

Description

Token issuance limit

For token exchange, the IDaaS authorization server accepts only tokens that it issued

Permission limit

The client must be authorized for the target audience and scope

Token status limit

The subject token must be within its validity period and must be correctly verified by the authorization server

Exchange count limit

A token can be exchanged only a limited number of times to prevent infinite authorization loops

Token type limit

Only exchanges between access tokens are currently supported