Stablecoin Payments Glossary
Escrow Payment
An escrow payment is a payment in which funds are held until specified conditions are satisfied.
Explanation
In stablecoin systems, escrow arrangements may be implemented by a trusted intermediary or through smart contracts. Release conditions may depend on delivery, inspection, dispute resolution, or time-based triggers.
Why it matters
Escrow mechanisms can reduce trust requirements and improve transaction security in digital commerce.
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