Squid, a cross-chain router that aims to bridge different blockchain networks, has raised $6 million in a funding round backed by Ripple and North Island Ventures. The investment signals growing interest in making blockchain networks talk to each other — but the startup still faces serious security questions.
Who's behind the money
The round was led by Ripple and North Island Ventures, though the exact breakdown wasn't disclosed. Squid itself describes its product as a router that lets users swap assets across blockchains without having to manually wrap tokens or use centralized exchanges. The idea is to simplify what's currently a clunky process for anyone moving funds between networks like Ethereum, Avalanche, or Cosmos.
Ripple, best known for its XRP Ledger and ongoing legal fight with the U.S. Securities and Exchange Commission, has been expanding its investment arm. North Island Ventures is a crypto-focused venture firm that has backed several infrastructure plays.
Why cross-chain interoperability matters
Today, most blockchains operate like isolated islands. Moving assets from one chain to another often requires multiple steps, different wallets, and a fair amount of technical know-how. Squid's router aims to act as a single layer that abstracts away that complexity.
The funding boost could accelerate that work. With more capital, Squid plans to expand its team and add support for additional chains. The company hasn't announced specific new integrations yet, but the goal is to make cross-chain transactions feel as seamless as a regular token swap.
Security risks remain unresolved
For all the promise of interoperability, Squid's technology carries inherent risk. Cross-chain bridges and routers have been a favorite target for hackers. In the past two years, exploits on similar projects have led to hundreds of millions of dollars in losses.
Squid hasn't detailed any major security incidents, but the company acknowledges that security remains a critical concern. Users are trusting the router to correctly handle transactions across multiple chains — any bug or exploit could drain funds. Squid says it has completed audits, but audit reports alone haven't stopped attackers in other cases.
The question hanging over this funding round is whether Squid can scale its infrastructure without introducing new vulnerabilities. The company hasn't released a public timeline for its next security review or any bug bounty program.
For now, the $6 million gives Squid runway to build. But in a space where one bad contract can wipe out user trust, the real test is still ahead.
