Gate Introduces Proof of Security (PoSEC) with 104.58% Cold Storage Coverage

Gate has officially rolled out Proof of Security (PoSEC), an innovative asset security verification framework, positioning itself as the industry’s pioneer digital asset trading platform to implement such a system. Operating since its establishment in 2013, Gate has consistently prioritized user asset safety. With the debut of PoSEC, the platform broadens security validation past standard reserve adequacy to evaluate asset storage structures and extreme-risk protection abilities, thereby reinforcing safeguards for user funds and offering a practical framework for raising industry security benchmarks.

PoSEC Focuses on Asset Storage Security and Quantifies Extreme-Risk Coverage Capabilities

Unlike Proof of Reserves (PoR), which chiefly confirms whether asset reserves are sufficient, PoSEC places a primary focus on asset storage security. By openly revealing how assets are split between the exchange’s cold storage and hot wallets, PoSEC grants visibility into storage configurations and their capacity to absorb potential losses during extreme scenarios.

PoSEC introduces the cold storage coverage ratio as a pivotal metric to evaluate how thoroughly cold storage accounts for total user funds. A coverage ratio of 100% or higher signifies that, under the designated calculation formula, cold storage alone is adequate to support all user assets even if every asset stored in hot wallets were somehow compromised. PoR and PoSEC work in tandem, expanding security checks from mere reserve health to storage safety and risk mitigation, thereby supplying users with clearer, more thorough insights regarding asset protection.

Cold Storage Coverage Reaches 104.58%, with Open and Transparent Storage Structure

Based on a snapshot captured at 00:00 (UTC) on November 4, 2026, Gate’s cold storage coverage ratio hit 104.58%. At that time, cold storage assets and hot wallet funds comprised 88.26% and 11.74% of total assets, respectively. Qualifying cold storage assets consist of digital holdings kept offline alongside traditional assets managed via independent custody. To meet eligibility criteria, these funds must satisfy specific conditions: they cannot be utilized directly for everyday deposits and withdrawals; they must remain offline or under independent custody; transfers require multi-party authorization; and they must be independently verifiable.

An independent third-party audit firm is currently verifying the present figures. This evaluation encompasses asset authenticity alongside control, calculation methods, valuation processes, and coverage ratio computations. Once finalized, the audit report will be published directly on Gate’s official website to boost the credibility and transparency of its asset security disclosures.

From PoR to PoSEC: Continuously Strengthening Digital Asset Security

Gate has maintained a longstanding dedication to transparency and digital asset security. Back in 2020, Gate stood among the earliest platforms to deploy an open-source Proof of Reserves (PoR) framework alongside a Merkle Tree-driven asset verification tool, marking its place as an early advocate for reserve transparency. Gate later integrated advanced technologies like zk-SNARKs to refine its reserve verification process.

By October 18, 2026, Gate’s aggregate reserves reached roughly $8.688 billion, yielding an overall reserve ratio of 118.49%. The platform also utilizes a diverse array of protective measures—such as hot and cold wallet separation, multi-signature protocols, Multi-Party Computation (MPC), real-time risk monitoring, and zero-trust access controls—to forge a multi-tiered security defense spanning asset reserves, storage management, and risk defense.

Transitioning from PoR, which validates reserve levels, to PoSEC, which assesses storage security and extreme-risk absorption, Gate is progressively constructing an extensive security architecture that covers asset reserves, storage infrastructure, risk protection, and public audits. Looking forward, Gate intends to maintain its security-centric philosophy, mature the PoSEC standards and validation mechanisms further, and partner with other sector players to elevate asset security and transparency, creating a sturdier safety foundation for the sustainable expansion of the digital asset space.

Learn more: https://www.gate.com/proof-of-security

About Gate

Gate, founded in 2013 by Dr. Han, is one of the world’s leading cryptocurrency and integrated financial services platforms, spanning financial and everyday use cases including asset management, trading and payments. Serving over 62 million users globally, it supports trading across 5,400+ digital assets and 12,800+ stock assets and ETFs, while providing access to a comprehensive range of TradFi assets, including metals, stocks, indices, forex, and commodities to meet users’ end-to-end needs across asset holding, trading, and spending. As an industry benchmark, Gate was among the first platforms to implement 100% Proof of Reserves. Its ecosystem includes Gate Money, Gate Wallet, Gate Ventures, Gate for AI Agent, and a wide range of products and services.

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Disclaimer:

This content does not constitute an offer, solicitation, or recommendation. You should always seek independent professional advice before making investment decisions. Note that Gate may restrict or prohibit certain services in specific jurisdictions. For more information, please read the User Agreement.

Short FAQs

• What is Proof of Security (PoSEC)? PoSEC is an asset security verification framework introduced by Gate that goes beyond reserve adequacy to evaluate asset storage structures and extreme-risk coverage capabilities.
• What does a cold storage coverage ratio of 104.58% mean? It means that cold storage assets alone are sufficient to cover all user assets even if every asset held in hot wallets were lost. Gate’s coverage ratio reached this level according to a snapshot on November 4, 2026.
• How does PoSEC differ from Proof of Reserves (PoR)? While PoR primarily verifies whether asset reserves are adequate, PoSEC emphasizes asset storage security by publicly disclosing how assets are distributed between cold storage and hot wallets.
• Are Gate’s PoSEC figures audited? Yes, the data is undergoing verification by an independent third-party audit firm, which reviews asset authenticity, valuation, calculation methodologies, and coverage ratios prior to public publication.