Seven-Day Settlement

Definition ∞ Seven-day settlement refers to a transaction finalization period extending over seven calendar days. In traditional finance, this extended settlement timeframe means that the transfer of ownership and funds for a trade is completed a full week after the transaction is initiated. While many digital asset transactions settle much faster on-chain, some regulated financial products involving cryptocurrencies, especially those interfacing with legacy systems, might still adhere to longer settlement cycles. This duration contrasts sharply with the near-instantaneous finality often associated with blockchain technology.
Context ∞ Discussions around seven-day settlement in crypto news typically arise when comparing the efficiency of traditional financial markets with the speed of blockchain-native transactions. The debate often involves how the integration of digital assets into mainstream finance can reduce these lengthy settlement periods. A critical future development is the widespread adoption of real-time gross settlement systems or atomic swaps that could drastically shorten or eliminate such delays.