Crypto exchange Gate rolls out PoSEC, achieves 104.58% cold storage coverage

Gate has debuted a new asset security verification framework called Proof of Security (PoSEC), marking itself as the first digital asset trading platform to do so. The firm, established in 2013, has placed user asset security as a top concern. PoSEC takes verification beyond reserves to cover storage structures and risk coverage, further securing user assets and giving the industry a practical method to lift security standards.

PoSEC Focuses on Storage Security and Quantifies Extreme-Risk Coverage

While Proof of Reserves (PoR) mainly checks that reserves are adequate, PoSEC looks more at how assets are kept safe. By revealing how assets sit between cold wallets and hot wallets, PoSEC shows how storage structures can withstand losses in extreme situations. PoSEC uses the cold storage coverage ratio to measure how much user assets are backed by cold storage. A ratio of 100% or more indicates that, using the stated method, cold storage alone can cover all user assets if everything in hot wallets is lost. PoR and PoSEC work together, expanding asset checks from reserve adequacy to storage safety and risk coverage, giving users a clearer view of asset security.

Cold Storage Ratio Reaches 104.58%, with Open Storage Structure

Based on a snapshot taken at midnight (UTC) on November 4, 2026, Gate recorded a cold storage coverage ratio of 104.58%. Cold storage assets made up 88.26% of total assets, and hot wallet assets 11.74%. Offline digital assets and traditional assets held under independent custody are counted within cold storage. To be classed as cold storage, assets must not be used directly for day-to-day deposits or withdrawals, must be held offline or in independent custody, need multi-party authorisation for transfers, and be independently verifiable.

The figures are currently being checked by an independent third-party auditor. The review covers asset authenticity and control, valuation and calculation methods, and the coverage ratio maths. Once finished, the audit report will be posted on Gate's site, a move aimed at boosting transparency and trust in its security disclosures.

From PoR to PoSEC: Building Stronger Digital Asset Security

Gate has a history of focusing on digital asset security. In 2020 it became one of the first platforms to offer an open-source Proof of Reserves (PoR) mechanism alongside a Merkle Tree-based asset verification system, marking it as an early leader in this area. Later it incorporated zk-SNARKs technology to improve its reserve checks.

On October 18, 2026, Gate's total reserves were around $8.688 billion, giving it a reserve ratio of 118.49%. Its security setup includes hot and cold wallet segregation, multi-signature technology, Multi-Party Computation (MPC), dynamic risk monitoring, and zero-trust access controls. This creates several layers of security covering asset reserves, storage management, and risk protection.

With PoR focused on reserves and PoSEC covering storage and risk, Gate is putting together a security structure that spans reserves, storage, risk, and public checks. Going forward, Gate says it will stick to its security-first stance, push ahead with PoSEC standards and verification tools, and work with other industry players to boost asset security and openness, aiming to build a stronger security base for the sector's long-term growth.

The full methodology and current figures are available on Gate's Proof of Security page.

About Gate

Gate was launched in 2013 by Dr. Han. It calls itself a major cryptocurrency and integrated financial services platform, covering asset management, trading, and payments. With over 62 million users around the world, it offers trading across more than 5,400 digital assets and 12,800 stock assets and ETFs. It also gives access to TradFi assets such as metals, stocks, indices, forex, and commodities to meet users' full asset and trading requirements. An industry benchmark in this area, Gate was among the first platforms to adopt 100% Proof of Reserves. Its product range includes Gate Money, Gate Wallet, Gate Ventures, Gate for AI Agent, and various other services.

Disclaimer:

This material is not an offer, solicitation, or recommendation. Independent professional advice should be taken before making any investment decisions. Services from Gate may be limited or unavailable in some jurisdictions. The User Agreement on Gate's site should be consulted for details.