Gate Sets New Benchmark in Crypto Security with Proof of Security (PoSEC) and 104.58% Coverage
In a major move to strengthen trust and transparency in the digital asset industry, Gate has unveiled Proof of Security (PoSEC), a pioneering asset security verification framework. The platform is among the first in the sector to implement a PoSEC system, marking a significant evolution from traditional reserve verification toward a more comprehensive approach to asset protection.
PoSEC vs. Proof of Reserves: Expanding the Scope of Security Verification
While Proof of Reserves (PoR) focuses on confirming that a platform holds enough assets to cover user balances, PoSEC goes further by also assessing how those assets are stored and whether they can withstand extreme risk scenarios.
“PoSEC introduces visibility into asset storage structures and quantifies risk coverage capabilities,” a Gate spokesperson noted. “This complements PoR and gives users a clearer picture of true asset safety.”
Unlike PoR, which primarily validates reserve adequacy, PoSEC emphasizes asset storage security. It requires platforms to publicly disclose the distribution of assets between cold storage and hot wallets, enabling users to see not only how much is held, but also how safely it is kept. A key metric introduced by PoSEC is the cold storage coverage ratio: a value of 100% or higher means cold storage alone could cover all user assets even if all hot wallet assets were lost.
You can learn more about the framework on Gate’s dedicated page.
Cold Storage Coverage Hits 104.58%: Transparent Storage Structure Revealed
According to a snapshot taken at 00:00 UTC on November 4, 2026, Gate’s cold storage coverage ratio reached 104.58%. This means cold storage assets account for 88.26% of total assets, while hot wallet assets represent 11.74%. Cold storage includes assets held offline or under independent custody, meeting strict criteria such as no direct use for routine deposits/withdrawals, multi-party authorization requirements, and independent verifiability.
The current data is being verified by an independent third-party audit firm. The review covers asset authenticity and control, valuation methods, and the calculation of the coverage ratio. Once completed, the audit report will be published on Gate’s official website, further enhancing transparency and credibility.
A History of Security Leadership: From PoR to PoSEC
Gate has long prioritized user asset protection. In 2020, it was among the first platforms in the industry to introduce an open-source Proof of Reserves (PoR) mechanism and a Merkle Tree–based asset verification solution. Later, the platform integrated advanced technologies like zk-SNARKs to strengthen its reserve verification framework.
As of October 18, 2026, Gate reported total reserves of approximately $8.688 billion, with an overall reserve ratio of 118.49%. Beyond reserves, the platform employs multiple security layers, including:
- Segregation of hot and cold wallets
- Multi-signature technology
- Multi-Party Computation (MPC)
- Dynamic risk monitoring
- Zero-trust access control
This layered approach ensures protection across asset reserves, storage management, and risk mitigation.
“From PoR to PoSEC, we’re building a multi-layered security framework that covers reserves, storage, risk protection, and public verification,” the spokesperson added. “Our goal is to set industry benchmarks and collaborate with other participants to improve transparency and safety for all users.”
Looking ahead, Gate plans to further develop PoSEC standards and verification mechanisms, and to collaborate with more industry players to enhance asset security and transparency. This initiative aims to lay a stronger foundation for the long-term, sustainable growth of the digital asset ecosystem.
For more information about Gate and its security practices, visit the official website.
Disclaimer
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About The Author
Anastasiia O. is an editor at MPost, where she focuses on reshaping content across a wide spectrum of topics. With an eye for detail and a genuine interest in storytelling, she helps ensure that the content is both accurate and engaging. Her experience spans multiple areas, providing her with the knowledge to offer insightful contributions to various topics highlighted on the platform.
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Anastasiia O. is an editor at MPost, where she focuses on reshaping content across a wide spectrum of topics. With an eye for detail and a genuine interest in storytelling, she helps ensure that the content is both accurate and engaging. Her experience spans multiple areas, providing her with the knowledge to offer insightful contributions to various topics highlighted on the platform.
