Gate launches proof of security standard, says cold reserves cover 104.58% of user assets.

Gate introduced a Proof of Security (PoSEC) standard that measures whether an exchange's cold reserves could cover all user assets if hot wallets were fully lost, claiming 104.58% cold-reserve coverage. The exchange said 88.26% of its total assets sit in cold wallets and 11.74% in hot wallets, with disclosed reserves of $8.69 billion equal to 118.49% of user assets. CEO Lin Han said the figures are undergoing independent audit and that some cold reserves include equities and U.S. Treasuries held by third-party custodians. He positioned PoSEC as a complement to proof-of-reserves, showing how assets are stored and protected rather than merely that they exist, while acknowledging the standard cannot verify internal passwords, private-key management or access controls. The initiative adds a storage-and-custody dimension to exchange transparency reporting as scrutiny of reserve disclosures continues.