What it means
Instructions and release conditions
An escrow arrangement identifies what is held, who controls it and when release is permitted. The escrow agent’s duties, fees, dispute procedures and regulatory status depend on the arrangement and jurisdiction.
Crypto implementations need the same questions
A platform balance or smart contract should not be called regulated escrow merely because funds are temporarily held. A contract can enforce coded conditions but needs a way to evaluate off-chain events. Mortgage escrow accounts for taxes and insurance are another use of the term with a different purpose.
Related concepts
In practice
A concrete example
A buyer and seller specify delivery and acceptance conditions before an independent service releases the held purchase funds.
Technical notes & boundaries
Legal classifications vary. The California source explains a jurisdiction-specific framework; the CFPB source concerns mortgage escrow rather than every marketplace transaction.
Go to the source.
Original references used for this definition. Product details and standards can change.
