CertiK has completed an independent Proof of Reserves (PoR) audit for Gate Technology FZE, the Dubai-based entity of the Gate Group. Gate Dubai exchange is licensed by the Virtual Assets Regulatory Authority (VARA). The audit verified that the platform's on-chain reserves fully back its user liabilities across all in-scope assets as of December 31, 2025.
What Was Verified
The engagement covered 10 digital assets: ADA, ATOM, BNB, BTC, DOGE, DOT, ETH, LTC, XRP, and SOL, spanning nine blockchain networks including Bitcoin, Ethereum, BNB Chain, Cardano, Cosmos, Dogecoin, Litecoin, Polkadot, and XRP Ledger.
Every in-scope asset met or exceeded a 100% collateralization threshold on a per-token basis as of the date of audit.
How CertiK Verifies Liabilities
The first phase of any PoR audit is establishing the total amount an exchange owes its users. CertiK supervises the generation of a Client Liability Report, which is a snapshot of all user balances for the in-scope assets taken at a specific point in time.
To protect user privacy, only the minimum necessary data is collected. Each user account is assigned a unique, confidential hash to ensure anonymity. This hashed data is then used to construct a Merkle Tree, a cryptographic data structure that aggregates all individual user liabilities into a single root hash. The Merkle Tree allows any individual user to independently verify that their balance was included in the total without exposing anyone else's data.
CertiK independently rebuilt the Merkle Tree using Gate's open-source repository rather than relying on the client's own output. The liability CSV was normalized for consistent formatting and units, hashed per account to produce leaf nodes, and then processed through pairwise hash concatenation with duplication of odd nodes and iterative computation up to the root. The independently computed Merkle root matched exactly with the root published by Gate Technology FZE, with no discrepancies in tree structure, leaf hashing, or proof validation.
The open-source Merkle proof validator is publicly available for anyone to verify here.
How CertiK Verifies Assets
The second phase focuses on proving that the exchange actually controls the wallets it claims hold reserve assets. CertiK collected a complete list of all public keys and wallet addresses from Gate Technology FZE management across all in-scope networks.
For each wallet with a non-zero balance, ownership was verified through on-chain transaction-based proof. Gate Technology FZE initiated and confirmed a blockchain transaction from each address under CertiK's direction, cryptographically demonstrating possession of the corresponding private keys. This is a stronger form of verification than simply observing balances on a block explorer because it proves active control, not just visibility.
Zero-balance and out-of-scope addresses were excluded from the verification. All resulting transaction hashes and confirmation details were retained as audit evidence. The full list of 22 audited reserve addresses across all networks is included in the published report.
How We Measure Collateralization
Rather than converting everything to a single fiat value and comparing totals, CertiK performs the collateralization analysis on a per-asset, token-denominated basis. This means that the reserves and liabilities for BTC are compared in BTC, ETH in ETH, and so on.
This approach is intentional. It avoids introducing reliance on external price oracles or market data feeds, which can vary across sources and fluctuate between the snapshot time and the reporting date. By comparing native token quantities directly, the verification reflects the exact on-chain and ledger balances for each asset, independent of price movements.
The result is a collateralization ratio for each asset that tells you whether the exchange holds enough of that specific token to cover what it owes users in that same token.
How Proof of Reserves Supports the Regulatory Landscape
Regulatory frameworks for virtual assets are evolving rapidly, particularly in jurisdictions like Dubai where VARA has established comprehensive licensing requirements for exchanges. As these frameworks mature, regulators are increasingly looking for standardized, independently verifiable mechanisms to ensure that licensed platforms maintain adequate reserves.
Proof of Reserves audits serve this need by providing a transparent, cryptographically grounded method for verifying that customer assets are fully backed at a certain point in time. PoR audits leverage the inherent transparency of public blockchains to independently verify holdings on-chain. The use of Merkle Trees adds a layer of user-level verifiability that allows individual customers to confirm their inclusion without compromising the privacy of other users.
For exchanges operating under regulatory oversight, regular PoR attestations demonstrate a commitment to the custody and safekeeping standards that regulators expect.
Disclaimer
It is worth noting that a PoR audit is a point-in-time attestation of on-chain assets and corresponding user liabilities as of 31 December 2025 only. It does not constitute a comprehensive financial audit of all assets, liabilities, solvency, liquidity, capital adequacy, or the overall financial position of Gate Technology FZE.
The PoR covers only the specified in-scope assets and does not represent an ongoing guarantee of reserves. It does not constitute regulatory approval or endorsement by VARA or any other authority.
Virtual assets carry risk, and users should not rely solely on this report when making financial decisions.
Learn More
To learn more about CertiK's Proof of Reserves services or to request an engagement for your platform, visit certik.com, or reach out to our team directly.
