Identity Digital, the company that manages numerous gTLDs, has cautioned its network of registrars against sending payments to its Silicon Valley Bank (SVB) account. SVB, the 16th largest bank in America, was closed by US financial regulators on Friday due to a deposit run, marking the biggest failure since the 2008 financial crisis.



Yesterday, Identity Digital informed its registrars that it was a customer of SVB but assured them that its exposure was limited and that it remained fully committed to serving its customers, employees, and vendors without any interruption. However, it requested its partners to send payments to its HSBC bank account instead.

In 2017, SVB also provided a $110 million credit facility to ID and Donuts. This credit facility was used by ID to finance its acquisition of Rightside for $213 million.

The failure of SVB was so concerning that US President Joe Biden addressed the public yesterday morning, assuring them that their deposits were secure and the banking system was stable.

The SVB debacle is a stark reminder of the fragility of the financial system. It's astonishing that a bank of its size could fail so suddenly, leaving thousands of customers in limbo. Identity Digital's cautionary move is a wise one, but it's also a testament to the lack of transparency and accountability in the banking sector.