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

Gate has introduced Proof of Security (PoSEC), a new asset security verification framework, becoming the first digital asset trading platform to launch such a system. Unlike Proof of Reserves, which focuses on reserve adequacy, PoSEC emphasizes asset storage security by publicly disclosing the distribution between cold storage and hot wallets. The key metric is cold storage coverage ratio, which measures the extent to which cold storage covers total user assets. A ratio of 100% or more indicates cold storage alone could cover all user assets even if hot wallets were lost. According to a snapshot on November 4, 2026, Gate's cold storage coverage ratio reached 104.58%, with cold storage accounting for 88.26% and hot wallets 11.74% of total assets. This means Gate's cold storage exceeds total user assets, providing a buffer against extreme losses. The data is undergoing independent third-party audit, and the report will be published on Gate's website. Since 2013, Gate has prioritized asset security, introducing Proof of Reserves in 2020 and enhancing it with zk-SNARKs. As of October 18, 2026, Gate's total reserves were $8.688 billion with a 118.49% reserve ratio. PoSEC extends transparency from reserve adequacy to storage security, marking a significant step in industry security standards. This new framework offers users deeper insight into how their assets are protected.