Gate has reached a significant milestone by launching its innovative asset security verification framework known as Proof of Security (PoSEC). This initiative positions Gate as the industry pioneer in deploying a digital asset trading platform that integrates the PoSEC security verification system. Since its inception in 2013, Gate has prioritized the safeguarding of its users’ assets. The introduction of PoSEC broadens the scope of security validation beyond just assessing reserve adequacy to encompass various aspects of asset custody and risk mitigation, thereby enhancing protective measures for user assets and raising industry security benchmarks.
PoSEC: A Shift Toward Enhanced Asset Custody Security
While traditional Proof of Reserves (PoR) methods focus primarily on confirming the availability of asset reserves, PoSEC emphasizes the security of asset custody. This advanced framework sheds light on how assets are distributed within the platform, particularly between cold storage and hot wallets, thereby offering insight into the protective structures in place for assets during extreme situations.
A key innovation introduced by PoSEC is the cold storage coverage ratio—a critical measurement that indicates how well cold storage can safeguard user assets overall. A coverage ratio equal to or greater than 100% signifies that the cold storage reserves are sufficient to cover all user assets even if all hot wallet assets are compromised. Together, PoR and PoSEC provide complementary layers of security validation, broadening the understanding and assurance users have regarding asset safety.
Transparency in Security: Cold Storage Coverage Exceeds 104%
As of a recent assessment conducted at 00:00 (UTC) on November 4, 2026, Gate’s cold storage coverage has reached an impressive 104.58%. The allocation of assets in cold and hot storage stands at 88.26% and 11.74%, respectively. The assets stored in cold storage are primarily digital assets held offline along with traditional assets managed independently. To qualify for this classification, these assets must not be used in everyday transactions and must be securely held offline or under independent custody with strict multi-party approval processes for any transfers, all while being independently verifiable.
The current data has undergone verification by an independent auditing firm. This audit assesses various factors including asset reliability, management practices, valuation methods, and the calculations underpinning the coverage ratios. Following the completion of this audit, a detailed report will be made available on Gate’s official website to enhance the transparency and credibility of its asset security disclosures.
Progressing from PoR to PoSEC: Strengthening Security in Digital Assets
Gate’s commitment to the security and transparency of digital assets has evolved over the years. In 2020, the company became a frontrunner in the industry by introducing an open-source Proof of Reserves (PoR) mechanism along with a Merkle Tree-based verification solution, which significantly advanced the conversation around reserve transparency. Subsequent enhancements have included the integration of zk-SNARKs to bolster the validation of asset reserves.
As of October 18, 2026, Gate’s total reserves are estimated at approximately $8.688 billion, boasting an overall reserve ratio of 118.49%. The platform employs a multitude of security measures including the separation of hot and cold wallets, multi-signature verification, multi-party computation (MPC), dynamic risk assessment techniques, and zero trust access controls, thereby constructing a robust, multi-layered security framework that spans asset reserve validation, storage protocols, and risk management.
Transitioning from PoR, which primarily focuses on reserve sufficiency, to PoSEC, which evaluates custodial security and risk adaptability, Gateway is steadily developing a comprehensive security framework that encompasses asset reserves, custody management, risk assessments, and public verification measures. Moving forward, Gate remains committed to a security-first approach, aiming to further refine PoSEC standards and verification mechanisms while collaborating with more industry stakeholders to enhance security and transparency and to solidify a foundational security framework that supports the sustainable development of the digital asset space.
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About Gate
Established by Dr. Han in 2013, Gate has emerged as a leading platform in the cryptocurrency and integrated financial services sector. It caters to diverse financial needs encompassing asset management, trading, and payment solutions. With a clientele exceeding 62 million users globally, Gate facilitates transactions involving over 5,400 digital assets and more than 12,800 equities and ETFs. Additionally, it provides access to an extensive array of traditional financial assets including metals, stocks, indices, foreign exchange, and commodities, fulfilling end-to-end requirements for users engaged in asset holding, trading, and spending. Gate is recognized as a pioneer for implementing a 100% Proof of Reserves protocol and maintains an ecosystem that includes offerings such as Gate Money, Gate Wallet, Gate Ventures, and Gate for AI Agent.
Disclaimer:
This article does not represent an invitation, solicitation, or endorsement. It is advisable to seek independent professional advice prior to making any investment choices. Please be aware that Gate may limit or prohibit specific services in certain jurisdictions. For more information, please refer to the User agreement.
