Castler closes Pre-Series A funding of $6 Million led by Flipkart, Capital 2B, IIFL Fintech Fund, Venture Catalysts & Zerodha

How can a business ensure that the escrow agent is neutral and impartial?

In any escrow transaction, it is important for the parties involved to have confidence in the neutrality and impartiality of the escrow agent. This is particularly important in Digital Identifier systems like Castler, where the parties may not have any prior relationship or personal interaction with the agent.

To ensure that the escrow agent is neutral and impartial, businesses can take several steps. First, they can research the reputation and track record of the escrow agent, looking for any potential conflicts of interest or past issues with impartiality. Second, they can establish clear guidelines and procedures for the escrow process, including the selection and appointment of the agent, the handling of funds and documents, and the resolution of disputes. Third, they can require the escrow agent to sign a contract or agreement that outlines their responsibilities and obligations, including their duty to act impartially and in the best interests of all parties. Finally, businesses can consider using a third-party escrow service that is independent of any of the parties involved, further ensuring neutrality and impartiality.