Gate has unveiled Proof of Security (PoSEC), an asset security verification framework designed to strengthen trust and transparency across the digital asset industry. The platform is among the first in the sector to implement a PoSEC system, marking a shift from traditional reserve verification toward a more comprehensive approach to asset protection.

PoSEC Expands the Scope of Proof of Reserves

Proof of Reserves (PoR) focuses on confirming that a platform holds sufficient assets to cover user balances. PoSEC goes further, 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 said. "This complements PoR and gives users a clearer picture of true asset safety."

Where PoR 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 under the framework is the cold storage coverage ratio: a value of 100% or higher means cold storage alone could cover all user assets even if every hot wallet asset were lost.

Further details about the framework are available on Gate's dedicated PoSEC page.

Cold Storage Coverage Reaches 104.58%

According to a snapshot taken at 00:00 UTC on November 4, 2026, Gate's cold storage coverage ratio reached 104.58%. Cold storage assets accounted for 88.26% of total assets, while hot wallet assets represented 11.74%. The reported ratio sits above the framework's 100% threshold, meaning cold storage holdings alone covered all user assets at the snapshot date, independent of hot wallet balances.

Under the framework, cold storage includes assets held offline or under independent custody that meet strict criteria: no direct use for routine deposits and 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 complete, the audit report will be published on Gate's official website, further enhancing transparency and credibility. Until the audit concludes, the figures are platform-reported, making the published report the milestone to watch for independent confirmation.

From PoR to PoSEC: A Record of Security Initiatives

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 mechanism and a Merkle Tree–based asset verification solution. The platform later integrated advanced technologies such as 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%. Read alongside the 104.58% cold storage coverage figure, the two metrics address the distinct questions PoSEC separates: whether holdings are sufficient to cover user balances, and how securely those holdings are stored.

Beyond reserves, the platform maintains multiple security layers:

• Segregation of hot and cold wallets
• Multi-signature technology
• Multi-Party Computation (MPC)
• Dynamic risk monitoring
• Zero-trust access control

The company said 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 participants to enhance asset security and transparency. The initiative is intended to lay a stronger foundation for the long-term, sustainable growth of the digital asset ecosystem. Near-term markers of that effort include the publication of the completed audit report and whether other industry participants adopt comparable disclosure practices.

Source: Metaverse Post