Private equity tokens are digital representations of ownership in private equity investments that can be bought, sold, or traded on various platforms. Tokenization enables fractional ownership, improved liquidity, and simplified management of private equity assets. Private equity and hedge fund assets are the most likely to see tokenization in the near future. Despite regulatory compliance being a challenge, recent initiatives to tokenize private funds signal a significant shift in the mindset of venture capitalists. Securitize, a digital security issuance and compliance platform, will make a $500 million fund available for investors in the United States and Japan, transforming fund stakes into digital tokens. While tokenization offers benefits such as earlier liquidity and simplified fractionalization, there are potential drawbacks such as regulatory uncertainty and limited trading volumes. Nonetheless, tokenizing private equity offers significant potential benefits and may become more widely adopted in the future.