An escrow account is a financial arrangement where a third party holds and manages funds on behalf of two parties involved in a transaction. The funds are usually held until certain conditions are met, such as the completion of a sale or the fulfillment of a contract.
In the case of Castler digital escrow system, the funds held in the escrow account are not invested. Instead, they are held in a secure and separate account until the transaction is completed. This ensures that both parties involved in the transaction are protected and that the funds are only released when the agreed-upon conditions are met. Investing the funds in an escrow account is not a common practice as it could potentially put the funds at risk. The purpose of an escrow account is to provide a neutral and secure space for funds to be held until the transaction is completed. Therefore, it is important to choose a reputable and trustworthy escrow service provider, such as Castler, to ensure the safety and security of the funds.