Your token service would authenticate users using their credentials for your system.
In one case directly (via an IAM limited account), in another via a token they can request. In both cases, the acct is limited to one specific AWS resource. In both cases, the creds can be revoked centrally. In both cases the creds are embedded in the app.
Smart people who build these things (AWS) seem to think a TVM is a better solution. I don't understand why.