Gate.io launches Proof of Security standard claiming cold storage covers 104.58% of user assets.
Tech & Launches ·
Gate has launched Proof of Security (PoSEC), a security standard designed to disclose how exchanges store user funds, with the platform claiming that its cold storage covers 104.58% of user assets. The metric is intended to show that even if all hot wallet holdings were lost, cold storage reserves alone would exceed total user asset obligations.
The initiative builds on Proof of Reserves, an earlier transparency measure Gate says it pioneered. PoSEC asks exchanges to publish their fund storage methodology and maintain cold storage coverage that encompasses all user assets. Gate has framed the standard as a step beyond demonstrating that assets exist, instead specifying where and how they are held.
The exchange has published its PoSEC metrics on a dedicated page but has not disclosed what triggered the launch timing or whether other exchanges have committed to adopting or disclosing similar cold storage coverage ratios. The practical implications of a ratio exceeding 100%—whether it reflects surplus reserves, accounting methodology, or asset appreciation—remain unspecified in the available material.