The bill SB1191 amends Arizona Revised Statutes section 6-843 to include distributed ledger technology (DLT) transfers as permissible forms of deposit into escrow accounts. Under the new provisions, DLT transfers must occur within a secure network of federally insured depository institutions, where disbursements are recorded on a ledger and securely deposited in the escrow agent's account. The bill specifies that these transfers must be fully settled, irrevocably credited, and conducted in U.S. dollars, while also requiring that the value of the transferred digital asset maintains price stability by being redeemable on a one-to-one basis with U.S. dollars.

Additionally, the bill clarifies that DLT transfers cannot be settled or backed by a central bank digital currency and defines "distributed ledger technology" as a decentralized, shared, and immutable ledger that is tamper-resistant and cryptographically protected. The bill also retains the existing provision allowing escrow agents to disburse up to $500 per transaction without complying with the deposit requirements. Overall, the new legislation modernizes the escrow process by integrating DLT, enhancing the security and efficiency of financial transactions in real estate and other sectors.

Statutes affected:
Introduced Version: 6-843
Senate Engrossed Version: 6-843
House Engrossed Version: 6-843
Chaptered Version: 6-843