Do companies have cash reserve requirements for customer funds held (such as various crowdfunding platforms or escrow services)?

Loki777's picture
Rank: King Kong | 1,400

I know companies like ADP and Paypal will do short term investments on floats for cash they are holding for a couple of days. Are there cash reserve requirements for crowdfunding or escrow companies? For example, a campaign may be 30-60 days, and the funds are not given to the creator of the crowd funder until the crowdfunding is complete. Is the crowdfunding platform able to invest a % of these funds in high grade short term investments? Are there regulations around this?

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Dec 13, 2018