Gate has introduced a new security framework called Proof of Security, or PoSEC, designed to demonstrate an exchange's ability to cover all user liabilities even if its hot wallets are fully compromised. The company launched this initiative on November 5, 2026, positioning it as the first standard of its kind in the digital asset industry.
The initial PoSEC snapshot, taken at 00:00 UTC on November 4, 2026, reported a cold storage coverage ratio of 104.58%. According to the data, 88.26% of user assets are held in offline storage, while 11.74% remain in internet-connected hot wallets. Gate manages over $10 billion in user assets.
The framework follows a major security incident on October 29, 2026, when attackers stole approximately $6.34 billion from Binance. In response, Gate CEO Lin Han has proposed an industry-wide security alliance and the implementation of a Vault system utilizing multi-party computation and withdrawal delays.
Gate has published the PoSEC methodology to encourage adoption by other platforms. The exchange has previously utilized Proof of Reserves since 2020, incorporating Merkle trees and zk-SNARKs to verify user balances. PoSEC aims to complement these existing reserve reports by focusing on asset distribution and resilience against theft.
