Location swap refers to the change in claim assets that backs any given token without affecting any other attributes whatsoever. Oftentimes, digital assets are backed by physical commodities, which are known as asset-backed tokens.
These tokens act as a proxy claim for the digital asset, whose attributes are often mentioned in the token. These attributes include the physical description of the commodity, its dimensions as well as current storage location.
Under such circumstances, if two such commodities are exactly the given with different locations, they can be easily swapped. Location swap allows the holder to swap one token with another, meaning they are simply changing the physical location of the token.