Digital Escrow as a Solution for DORA and CRA Regulations

The European Union is strengthening digital resilience. With the introduction of DORA (Digital Operational Resilience Act) and the Cyber Resilience Act (CRA), organizations are required not only to secure their IT systems, but also to make them operationally resilient. But how do you approach that in practice? And how do you demonstrate that you are prepared for the failure of software suppliers or digital chains? In this blog, we show how digital escrow is a smart and demonstrable solution for both DORA and CRA.

What Exactly Are DORA and CRA?

Both regulations focus on digital continuity and risk management within the EU, each with its own emphasis:

• DORA targets the financial sector and requires institutions to actively manage their ICT risks, including outsourcing and software dependencies.
• CRA has a broader scope and sets requirements for the cybersecurity of digital products (including software), such as update obligations, incident response, and lifecycle management.

Both laws set a high bar for demonstrable control over software and digital services. Relying on supplier promises is no longer enough, you must be able to show that you maintain access to the source.

Why Traditional Contracts Fall Short

Many organizations believe they are adequately protected through a clause in their contract. In practice, however, major shortcomings remain:

• No access to source code or technical documentation
• No fallback option in case the supplier fails or exits
• No process for release or recovery of systems
• No evidence for regulators that you are in control

And that is exactly where digital escrow comes in.

What Does Digital Escrow Actually Do?

With digital escrow, essential software information is securely deposited with an independent third party. This may include:

• Source code, build instructions, and CI/CD pipelines
• Infrastructure-as-code, configurations, and scripts
• Data extractions and recovery procedures
• Admin accounts and technical documentation
• Updates and changelogs, verified and logged

In case of disruption such as bankruptcy, cyberattack, or contract termination, the material can be released based on predefined criteria.

How Digital Escrow Supports DORA and CRA Compliance

For DORA: Ensuring Digital Resilience

Escrow supports DORA by:

• Managing risks in the supply chain
• Guaranteeing alternative access in case of disruptions
• Facilitating internal and external recovery procedures
• Providing insight into supplier dependencies

For CRA: Demonstrating Software Security

With digital escrow, you can:

• Document secure release processes (including updates)
• Recover from incidents more quickly with your own resources
• Maintain full product information and changelogs
• Demonstrate lifecycle responsibility

Regulators demand action — escrow shows you are thinking ahead.

Practical Example

A European insurer subject to DORA was using an American SaaS solution for claims processing. When it became clear that the vendor did not have an EU-based disaster recovery plan, this resulted in compliance risks.

With a digital escrow solution:

• Source code and infrastructure documentation were securely deposited
• Access to the platform was arranged through a fallback environment
• Annual verification ensured completeness and recoverability

In the event of an incident, the insurer is now able to continue operations independently with demonstrable compliance toward the regulator.

What You Should Do Now

1. Determine whether your organization falls under DORA or CRA
2. Map out software and supplier risks
3. Review contracts and control mechanisms
4. Implement escrow for critical software services
5. Integrate escrow into your BCM, audit, and compliance processes

Conclusion

DORA and CRA are reshaping the landscape of software and supplier management. Organizations must be demonstrably prepared for outages, disruptions, and cyber threats. Digital escrow is no longer a nice-to-have, but a strategic tool that directly strengthens your compliance and business continuity.

Those who arrange escrow now will avoid sanctions, downtime, and reputational damage later.