Gate launches industry-first PoSEC, reports 104.58% cold storage coverage on Nov 4

3 min

Gate launched Proof of Security (PoSEC), an asset security verification framework that extends beyond reserve adequacy to include asset storage structure and extreme-risk coverage. The system discloses the split between cold storage and hot wallets and quantifies how much of user assets cold storage alone can cover under loss scenarios. Gate positions PoSEC as complementary to Proof of Reserves (PoR), adding storage security and risk coverage transparency.

PoSEC scope and metrics

PoSEC focuses on:

Storage structure disclosure: public breakdown of assets in cold storage versus hot wallets.
Cold storage coverage ratio: measures whether cold storage alone can cover total user assets. A ratio ≥ 100% indicates full coverage even if hot wallet assets are lost, under the stated methodology.
Risk coverage transparency: extends verification from reserves to storage security and extreme-risk scenarios.

Current coverage and wallet composition

Snapshot at 00:00 UTC on November 4, 2026:

Cold storage coverage ratio: 104.58%.
Asset split: 88.26% in cold storage, 11.74% in hot wallets.

Cold storage assets comprise offline digital assets and traditional assets under independent custody. Qualifying criteria include: not used for routine deposits and withdrawals, offline or independently custodied, multi-party authorization for transfers, and independent verifiability.

Audit and verification

An independent third-party audit firm is verifying asset authenticity and control, valuation and calculation methodologies, and coverage ratio calculations. Gate will publish the audit report after completion to increase transparency and credibility.

From PoR to PoSEC

Gate’s prior measures:

Introduced open-source PoR and Merkle Tree-based user asset verification in 2020.
Integrated zk-SNARKs to strengthen reserve verification.
As of October 18, 2026: total reserves approximately $8.688 billion; overall reserve ratio 118.49%.
Security mechanisms: hot–cold wallet segregation, multi-signature, Multi-Party Computation, dynamic risk monitoring, zero-trust access control.

The PoSEC rollout expands verification to storage security and risk coverage, aiming for a multi-layer security framework across reserves, storage management, risk protection, and public verification. Gate plans to further develop PoSEC standards and collaborate with industry participants to improve asset security and transparency.

About Gate

Founded in 2013 by Dr. Han, Gate is a cryptocurrency and integrated financial services platform serving over 62 million users. It supports trading across 5,400+ digital assets and 12,800+ stock assets and ETFs, and provides access to metals, stocks, indices, forex, and commodities. Gate was among the first platforms to implement 100% PoR. Its ecosystem includes Gate Money, Gate Wallet, Gate Ventures, and other products and services.