Tokenization embeds ownership and rules directly into assets through code, transforming the private equity market by enabling automated compliance, selective liquidity, and efficient settlement. Unlike ETFs that encapsulate existing assets, tokenization directly rewrites the assets themselves, simplifying processes for institutional investors. This shift shifts the competitive advantage from product creation to protocol design, where portable compliance standards become crucial. Early applications of tokenized funds indicate that the infrastructure is maturing, capable of providing pension funds and other asset allocators with precise risk exposure and improved collateral management.