Based on the Internet Corporation for Assigned Names and Numbers's most recent list of domain registrars, Google is a licensed domain registrar (see number 895). NickW mentions that it is one of the ways to get out of the sandbox, buy a domain name from Google.

I doubt this is recent, they have probably been licensed for a while. But still is funny..."Get out of sandbox with a GOOG domain name buy?"

This has been /. and forum discussion at DigitalPoint.