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

According to Shenchao TechFlow, on November 5, CoinDesk reported that Gate launched the Proof-of-Security standard PoSEC, which measures whether an exchange's cold reserves can cover user assets if all hot wallet assets are lost.

Gate said its cold reserves cover 104.58% of user assets, with 88.26% of total assets held in cold wallets and 11.74% held in hot wallets. The latest disclosed total reserves are $8.69 billion, equivalent to 118.49% of user assets. Founder and CEO Lin Han said the relevant data is undergoing an independent audit, and some cold reserves include equities and U.S. Treasuries held in custody by independent institutions.

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

Source: Shenchao TechFlow