All termsCustody and Asset AdministrationWorth knowing
Escrow
Escrow is an arrangement in which assets, money or documents are held by an independent or agreed third party until specified conditions are satisfied. Once those conditions are met, the assets are released according to the arrangement.
Why it matters to you
Escrow can reduce the risk of one party delivering money or assets before the other side has met its obligations. In tokenization, escrow arrangements may still be used where transactions involve offchain assets, legal documents or conditions that cannot be completed entirely through a smart contract.
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