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

Gate has officially introduced Proof of Security (PoSEC), a pioneering asset security verification framework, becoming the first digital asset trading platform to implement such a system. Since its inception in 2013, Gate has prioritized user asset security, and with PoSEC, it expands security verification to include asset storage structures and risk coverage capabilities.

Focus on Asset Storage Security

Unlike the traditional Proof of Reserves (PoR), which primarily verifies asset reserves, PoSEC emphasizes asset storage security. By publicly disclosing the distribution of assets between cold storage and hot wallets, PoSEC enhances transparency regarding asset storage and its capacity to mitigate potential losses in extreme scenarios.

Cold Storage Coverage Ratio

As of a snapshot taken on November 4, 2026, Gate's cold storage coverage ratio reached 104.58%. The assets are distributed with 88.26% in cold storage and 11.74% in hot wallets. Cold storage assets are defined as those held offline or under independent custody, requiring multi-party authorization for transfers.

Independent Verification

The data is currently undergoing verification by an independent third-party audit firm, which will assess asset authenticity, control, and valuation methodologies. The audit report will be published on Gate’s official website to enhance the credibility of its asset security disclosures.

Commitment to Security

Gate has consistently demonstrated its commitment to digital asset security and transparency. In 2020, it was among the first to introduce an open-source Proof of Reserves mechanism. As of October 18, 2026, Gate's total reserves were approximately $8.688 billion, with a reserve ratio of 118.49%. The platform employs various security measures, including hot and cold wallet segregation and multi-signature technology, to establish a robust security framework.

Looking ahead, Gate aims to further develop PoSEC standards and collaborate with industry participants to enhance asset security and transparency, reinforcing the foundation for sustainable growth in the digital asset sector.

New Developments on Gate's Proof of Security (PoSEC)

• Gate has introduced a new metric called Proof of Security (PoSEC) with a reported cold storage coverage of 104.58%.
• The recent hot-wallet loss test conducted by Gate utilizes separate measurement bases.
• Independent verification of the current PoSEC data is still in progress, raising questions about the accuracy of the reported figures.

New Developments in Gate's Security Framework

• Gate has launched a new asset security verification framework called Proof of Security (PoSEC), becoming the first digital asset trading platform to implement such a system.
• As of November 4, 2026, Gate's cold storage coverage ratio reached 104.58%, with cold storage assets accounting for 88.26% and hot wallet assets for 11.74% of total assets.
• Cold storage assets are held offline or under independent custody, requiring multi-party authorization for transfers and being independently verifiable.
• Gate's total reserves as of October 18, 2026, amounted to approximately $8.688 billion, with an overall reserve ratio of 118.49%.
• The independent third-party audit firm is currently verifying the data related to asset authenticity, control, and coverage ratio calculations, with the report to be published on Gate's official website upon completion.
• Gate has a history of prioritizing user asset security, having introduced an open-source Proof of Reserves (PoR) mechanism in 2020 and incorporating advanced technologies like zk-SNARKs for asset verification.