New Framework Extends Security Verification to Asset Storage

Gate Exchange has become the first digital asset trading platform to introduce Proof of Security, or PoSEC, a verification system that goes beyond checking reserve levels to examine how user assets are actually held. The framework focuses on storage security and quantifies coverage against extreme loss scenarios.

PoSEC introduces a cold storage coverage ratio as its central metric. When this ratio reaches or exceeds 100 percent, cold storage alone would suffice to cover all user assets even if every asset in hot wallets were lost, based on the defined methodology.

The initiative builds directly on Gate’s existing Proof of Reserves process. While PoR confirms that reserves meet or exceed customer holdings, PoSEC adds transparency around asset locations and risk mitigation.

104.58 Percent Cold Storage Coverage Achieved

According to a snapshot at 00:00 UTC on November 4, 2026, Gate’s cold storage coverage ratio stood at 104.58 percent. Cold storage assets made up 88.26 percent of total user assets, while hot wallet assets accounted for the remaining 11.74 percent.

Cold storage includes digital assets kept offline and traditional assets under independent custody. To qualify, these holdings must satisfy specific criteria: they cannot be used directly for routine deposits or withdrawals, must remain offline or in independent custody, require multi-party authorization for any transfers, and must be independently verifiable.

Hot wallet share: 11.74%

Cold storage share: 88.26%

Independent Audit Underway to Validate Disclosures

The latest snapshot data is currently being reviewed by an independent third-party audit firm. The audit examines asset authenticity and control, valuation and calculation methodologies, and the coverage ratio computations themselves. Upon completion, the full audit report will be published on Gate’s official website to increase transparency.

Historical Security Milestones and Additional Protections

Gate has a long record of prioritizing asset protection. The platform was among the first exchanges to launch an open-source Proof of Reserves mechanism in 2020, using Merkle Tree-based verification. Later enhancements included zk-SNARKs to strengthen reserve checks.

As of October 18, 2026, Gate’s total reserves reached approximately 8.688 billion dollars with an overall reserve ratio of 118.49 percent. The exchange maintains a layered security architecture that includes separation between hot and cold wallets, multi-signature technology, Multi-Party Computation, dynamic risk monitoring, and zero-trust access controls.

From its early PoR implementation to the current PoSEC rollout, Gate continues to expand verification from simple reserve adequacy to comprehensive storage and risk coverage. The company states it will keep advancing these standards and collaborating with other industry participants.

About Gate Exchange

Gate Exchange was founded in 2013 by Dr. Han. The platform serves more than 62 million users worldwide and offers trading across more than 5,400 digital assets and 12,800 stock assets and ETFs. It also provides access to traditional financial assets including metals, stocks, indices, forex, and commodities through integrated services.

Gate’s ecosystem encompasses products such as Gate Money, Gate Wallet, Gate Ventures, and Gate for AI Agent. The exchange positions itself as a benchmark in the industry for security practices, having implemented 100 percent Proof of Reserves as one of the first platforms to do so.