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Yes, escrow and intelligent release-based payments are at the heart of what we do. Hudson transforms static escrow agreements into dynamic, programmable workflows that automatically execute based on your specific business rules and milestones.
Our platform offers escrow logic featuring:
- Milestone-Based Funding release actions defined by external triggering events
- Multi-Party Approval Workflows involving complex approval chains with multi-stakeholder sign-offs
- Conditional Payment Logic with sophisticated "if-then" rules that automate contract logic.
- Time-Based Funding for scheduling automated disbursements based on specific dates or recurring intervals.
Most banks struggle with escrow disbursement automation because their core systems were built for traditional treasury management functions using general-purpose bank accounts. Today, most banks have dedicated personnel to oversee complex conditional payments, often involving Excel spreadsheets and significant communication overhead.
Hudson's technology platform solves this by offering:
- Virtual Ledgers to create programmable sub-accounts for each escrow transaction
- Custom Workflow Orchestration to trigger disbursements based on real-world events (inspection approvals, document uploads, milestone completions, etc.)
- Intelligent Automation to transform contract terms into executable payment logic steps
Banks face mounting pressures to automate escrow compliance, yet most still rely on manual processes that create risk and inefficiency.
Hudson's technology platform addresses these challenges by:
- Automating Compliance Monitoring to flag transactions requiring enhanced due diligence or specific state licensing
- Smart Document Generation for preparing required notices, escheatment letters, and regulatory filings
- Realtime Audit Trails to capture granular transaction detail for examiner review
- Jurisdiction-Aware Workflows that apply transaction processing rules based on geographic location, amount, type, etc.
Banks evaluating digital escrow platforms should prioritize capabilities that drive customer value, grow deposits, reduce operational costs, and maintain regulatory excellence.
Here are the non-negotiables:
Integrations That Actually Work. Look for platforms offering multiple integration paths—REST APIs, banking portal embedding, pre-built banking core connectors, sandboxes, and dedicated implementation support.
Intelligent Automation. Basic automation isn't enough. Seek platforms that transform contracts into executable code, enabling milestone-based releases, multi-party approvals, and conditional payment logic for handling complex scenarios, like distribution waterfalls and percentage-based disbursements, processed with minimal manual intervention.
Compliance as a Core Feature, Not a Checkbox. Regulatory capabilities must be first and foremost. SOC2 certification, state money transmission compliance, automated KYC/AML, escheatment processing, and examiner-ready reporting are the bare minimums. Also, the team behind the platform must proactively adapt to jurisdiction-specific requirements, rather than requiring you, the client, to be the regulatory expert.
Advanced Treasury Management. Virtual account structures that create unlimited sub-ledgers, real-time reconciliation across multiple payment rails, and intelligent transaction monitoring are essential. The platform should support ACH, wire transfers, real-time payments, and checks, automatically selecting the optimal rail based on transaction requirements.
True White-Labeling. Your brand should be front and center. Look for platforms offering complete UI customization, branded customer portals, and API-driven experiences that feel native to your banking environment. Your customers shouldn't feel like they're using a third-party product.
Hudson delivers all of these capabilities plus something equally important: a genuine partnership. We're not just a vendor selling pre-packaged features — we're payment experts who understand that your success requires a partner invested in transforming escrow from an operational burden into a competitive edge.
Hudson's contractual payments platform was explicitly built for scale —we process over $2B USD annually, with infrastructure designed to handle millions of daily transactions. The technology that powers our scalability is the virtual ledger architecture, which can create unlimited sub-accounts and eliminates the operational nightmare of managing physical bank accounts. Whether you're processing thousands of monthly rent deposits or millions of marketplace transactions, Hudson's contractual payment infrastructure scales elastically to meet your needs.
Credit unions face a unique challenge: members expect the digital experience and speed of large banks, but credit unions often operate with leaner teams and tighter budgets. Automation and orchestration bridge this gap, allowing credit unions to deliver modern financial services without requiring proportional increases in staff. Automation lets credit unions handle 10x more transactions without requiring 10x more staff, improves the member experience, reduces compliance risk, and enables them to compete with institutions many times their size.
Compliance is built into every layer of Hudson's contractual payments platform. We understand complex regulatory requirements, and our system is designed to make compliance management seamless.
We provide:
Automated Compliance Monitoring and real-time screening during onboarding for OFAC, KYC (Know Your Customer), KYB (Know Your Business), and AML (Anti-Money Laundering) with customizable alerting rules that flag potential issues before they become problems.
Comprehensive Audit Trails for every transaction, user action, and system event with timestamps and user attribution provide the details required for regulatory examinations and internal controls.
We maintain a SOC 2 Type II certification, validating our security, availability, and confidentiality standards, which supports our own compliance posture when working with regulated financial institutions.
Legacy platforms like Escrow.com have played a role in facilitating digital asset sales for years, handling the sale of websites, domain names, social media properties, and other web assets. For businesses requiring enterprise-grade digital asset escrow, the key consideration isn't just whether a platform can transfer digital assets, but whether it can integrate into your existing workflows, provide the compliance monitoring you need, and automate the complex conditional logic that governs when assets should be released.
Hudson's approach is different -- rather than offering one-size-fits-all digital asset escrow, we work with businesses to design custom solutions for their specific marketplace use cases—whether you're facilitating the sale of Amazon or Shopify eCommerce stores, patented software, music IP rights, or digital art, our API-first platform allows you to define the exact conditions, workflows, and multi-party coordination rules required to sell digital assets.
Traditional loan administration and servicing often involve juggling multiple systems — the loan servicing platform, drawdown-schedule spreadsheets, email chains for approvals, and disparate banking portals for fund disbursements. This fragmentation creates operational bottlenecks, increases the risk of error, and makes it challenging to provide borrowers with real-time visibility into the status of their loan funds.
Hudson connects directly to existing loan servicing systems via REST APIs or Salesforce-native integration, creating a unified workflow in which escrow activity and disbursements flow seamlessly alongside your loan data. Instead of switching between platforms, your team manages everything from a single interface.
High-value deals require more than basic escrow—they need sophisticated workflow automation, multi-party coordination, and the flexibility to handle complex deal structures that don't fit standard templates.
High-dollar, high-risk transactions demand:
- Flexible workflows for multi-stage approvals and conditional releases
- Multi-party coordination where funds flow between buyers, sellers, advisors, lenders, etc., according to complex agreements
– Real-time Compliance monitoring, including OFAC, AML, KYB, and KYC
– Comprehensive Audit trails for legal defensibility
– Systems Integration with existing legal, banking, and operational systems
Hudson's platform was created to facilitate contractual agreements that standard escrow platforms can't handle. We process over $2 billion USD in escrow volume annually for clients who need more than off-the-shelf solutions. Whether you're coordinating asset acquisitions involving earn-outs and holdbacks, managing major construction projects with milestone-based releases, or handling business transactions with contingent payments tied to performance metrics, Hudson's platform is designed to adapt to your deal terms rather than forcing you to adapt to platform limitations.
Digital escrow represents one of the more underutilized revenue opportunities in commercial banking. While most banks focus on traditional deposit and lending products, escrow services can generate significant fee income, deepen client relationships, and differentiate your institution from competitors.
Here's how smart digital escrow offerings can create additional revenue:
- Fee Income can be generated by account maintenance, disbursement fees, and percentage-based fees on funds under management. With proper pricing, escrow services can typically create 1-3% of transaction volume in topline revenue.
- Low-Cost Deposits from funds held in escrow accounts provide stable, cheap deposits that can be used to generate net interest margin. Unlike traditional deposits that can be withdrawn at any time, escrow funds often remain in accounts for extended periods during transaction lifecycles.
- Large Commercial clients using escrow services typically need complementary products, including business checking, treasury management, merchant services, and loans. Escrow can serve as the entry point to a deeper-wallet clientele.
- Create more meaningful relationships with commercial clients as they integrate digital escrow into their operations, and switching costs become cost-prohibitive. You're not just holding their money—you're embedded in their critical business processes, creating sticky, long-term relationships.
Our white-label offering allows you to launch sophisticated digital escrow products under your own brand without the time, cost, and complexity of building the technology yourself. White-label means your clients interact with your brand at every touchpoint—your logo, your domain, your customer portal, your branded communications. Customers are doing business with your financial institution, not with a third-party platform. You own the client relationship, accrue brand equity, and maintain control over the customer experience.
Modern contractual payments and escrow management platforms go far beyond simply holding funds—they provide end-to-end transaction orchestration, intelligent automation, and seamless integration with your existing business systems.
Here are some of the essential features that distinguish modern-day platforms from legacy solutions:
- Configurable business rules and decision tree logic to automate the entire contract payment lifecycle, programmatically define conditions for fund acceptance, handle approval routing based on transaction type or dollar threshold, milestone-based release triggers, and multi-party disbursement coordination. The platform executes these workflows without manual intervention while maintaining complete audit trails of every decision.
- API-first architecture approach allows sophisticated escrow functionality to be embedded directly within existing applications, connect with banking infrastructure, sync with in-house CRM systems, and automate all data exchange between platforms.
- Advanced treasury management features segregate funds across multiple projects, clients, or transactions within a single master account to ensure granular tracking and reporting while simplifying reconciliation.
- Smart Compliance facilitates the implementation of business-case-specific KYC (Know Your Customer), KYB (Know Your Business), and AML (Anti-Money Laundering) programs with customizable alerting rules to flag potential issues before they become problems.
Hudson's platform incorporates all these features and more, and was designed explicitly for financial institutions looking to grow deposits and serve a commercial client base with more sophisticated needs.
Book a discovery call to learn how our products create new revenue streams and elevate consumer trust.
