Gate Launches Proof of Security Standard, Claims Cold Reserves Cover 104.58% of User Assets

on November 5, according to CoinDesk, Gate launched the security proof standard PoSEC to measure whether an exchange’s cold reserves can cover user assets in the event of a complete loss of hot wallet funds.

Gate stated that its cold reserves cover 104.58% of user assets, with 88.26% of total assets held in cold wallets and 11.74% in hot wallets; its latest disclosed reserve total is $8.69 billion, equivalent to 118.49% of user assets. Founder and CEO Lin Han stated that the relevant data is undergoing independent audit, and part of the cold reserves consists of stocks and U.S. Treasury bonds custodied by independent institutions.

Lin Han noted that proof of reserves demonstrates the existence of assets, while PoSEC shows how the assets are stored and protected. He also acknowledged that the standard cannot verify internal passwords, private key management, or access controls at the exchange.