You can say it's more like locked bitcoin. But there's no token. Rather, it's locked between two users and only those two users. When two users agree to lock up bitcoin, this creates a channel. Both users run nodes which tracks how much of the locked bitcoin each user owns (how much of the channel liquidity is attributed to which user) LN runs off a network of connected channels that allows lightning to work.

A connects with B. Then B connects with C. Through B as an intermediary, A can now send to C.