If you were interviewing for a mid-level software engineering job you might suggest "that seems like a single point of failure that could result in a big failure, let's think about how we can add redundancy."
Seems like you haven't needed to think about systems design as a VC! "Yeah go to the same place as everyone else I invest in, what could possibly go wrong?!"
The redundancy is knowing that FDIC liquidation can handle the problem soon enough.
Do mid-level software engineers typically diversify across every single point of failure? Architectures? Programming languages? Compilers? Too much diversification itself can be a point of failure.
As long as you have a sufficiently robust insurance backup (the FDIC) choosing a robust single point of failure seems like an okay idea for business operations (it's not like it's literal life support). The people at the FDIC aren't machines; they can do what's necessary to fulfill their function in a timely manner.
Seems like you haven't needed to think about systems design as a VC! "Yeah go to the same place as everyone else I invest in, what could possibly go wrong?!"