It works a bit like Coinbase but more private and wallets can hold both Coinbase, Binance and ropiliti tokens if you happen to run a mint and you typically can swap between them using lightning.
On a more technical level, the mint blind-signs tokens that you generate but don't reveal to them, so the mint doesn't know a serial number or anything. Now when you pay Alice, she receives your token that is signed by your mint. She instantly "buys" a new token from that mint and pays with the token you gave her. This way, you can't pay somebody else with the same token and the mint cannot know it was you who created the original token. If Alice prefers a different mint or LN or Liquid, she has to pay the mint for an LN payment to some swap service - often integrated in the mint.
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