Gate Pioneers Proof of Security (PoSEC), Achieving 104.58% Cold Storage Coverage to Solidify Asset Security

Gate has officially introduced Proof of Security (PoSEC), a new asset security verification framework, becoming the first digital asset trading platform in the industry to launch a PoSEC security verification system. Since its founding in 2013, Gate has consistently placed user asset security at the forefront of its priorities. With the introduction of PoSEC, Gate extends security verification beyond reserve adequacy to include asset storage structures and risk coverage capabilities, further solidifying safeguards for user assets and providing a new practical approach to advancing industry security standards.

Unlike Proof of Reserves (PoR), which primarily verifies the adequacy of asset reserves, PoSEC places additional emphasis on asset storage security. By publicly disclosing the distribution of assets between platform cold storage and hot wallets, PoSEC provides visibility into asset storage structures and their ability to cover potential losses under extreme scenarios.

PoSEC introduces the cold storage coverage ratio as a key metric to measure the extent to which cold storage covers total user assets. A coverage ratio ≥ 100% means that, under the applicable calculation methodology, cold storage alone would be sufficient to cover all user assets even if all assets held in hot wallets were lost. PoR and PoSEC serve complementary purposes, extending asset security verification from reserve adequacy to storage security and risk coverage, while providing users with more comprehensive and transparent information about asset security.

According to the snapshot taken at 00:00 (UTC) on November 4, 2026, Gate’s cold storage coverage ratio reached 104.58%, with cold storage and hot wallet assets accounting for 88.26% and 11.74% of total assets, respectively. Cold storage assets include digital assets held offline and traditional assets under independent custody. To qualify, these assets must meet requirements such as not being directly used for routine deposits and withdrawals, being held offline or under independent custody, requiring multi-party authorization for transfers, and being independently verifiable.

The current data is undergoing verification by an independent third-party audit firm. The review covers asset authenticity and control, valuation and calculation methodologies, and coverage ratio calculations. The audit report will be published on Gate’s official website upon completion, enhancing the transparency and credibility of asset security disclosures.

Gate has long been committed to digital asset security and transparency. In 2020, Gate was among the first in the industry to introduce an open-source Proof of Reserves (PoR) mechanism and a Merkle Tree-based asset verification solution, establishing itself as an early contributor to reserve transparency in the industry. Gate subsequently incorporated technologies such as zk-SNARKs to enhance its asset reserve verification framework.

As of October 18, 2026, Gate’s total reserves amounted to approximately $8.688 billion, with an overall reserve ratio of 118.49%. The platform also employs a range of security mechanisms, including hot and cold wallet segregation, multi-signature technology, Multi-Party Computation (MPC), dynamic risk monitoring, and zero-trust access control, to establish a multi-layered security framework covering asset reserves, storage management, and risk protection.

From PoR, which verifies reserve adequacy, to PoSEC, which verifies asset storage security and risk coverage capabilities, Gate is progressively building a multi-layered security framework encompassing asset reserves, storage management, risk protection, and public verification. Looking ahead, Gate will continue to uphold its security-first principle, further develop PoSEC standards and verification mechanisms, and collaborate with more industry participants to enhance asset security and transparency, laying a stronger security foundation for the long-term, sustainable development of the digital asset industry.

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

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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