What is Escrow?

What is Escrow?
Team Bitxoe
Team Bitxoe

Created: 06/30/2020 12:38 PM - Updated: 06/30/2020 12:38 PM

Escrow is money/property held in trust by a third party company or platform to be turned over upon fulfilment of an agreement or contract. Escrow is a legal concept in which a financial instrument or an asset is held by a third party on behalf of two other parties that are in the process of completing a transaction.

The funds are held by the escrow agent until it receives the appropriate instructions or until predetermined contractual obligations have been fulfilled. Money, securities, funds, and other assets can all be held in escrow. When parties are in the process of completing a transaction, there may come a time when it is only interesting to move forward for one party if it knows with absolute certainty that the other party will be able to fulfil its obligations. This is where the use of escrow comes into play.

For example, a company wants to sign up with a pr agency who will be selling public relation services. The company wants to be certain that the public relation campaign must be delivered and want to pay the amount once the campaign is finished. The company can place the funds in escrow with bitxoe platform and give irrevocable instructions to disburse them to the agency delivers the assignment. This way, both parties are safe, and the transaction can proceed.

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