Visa's Founding Principles Mirror DAOs, Buterin Compares

Ethereum's Vitalik Buterin compares Visa's original vision to decentralized autonomous organizations (DAOs), citing the company's emphasis on equitable ownership, power distribution, diversity, and distributed governance. However, Visa has since deviated from this approach and become a centralized institution with control over payment processing, leading some to view it as "extractive" and "oppressive." Despite this, Visa has begun to embrace cryptocurrencies, piloting stablecoin settlements and integrating Web3 infrastructure.

Visa Inc. (V) has been making significant strides in the realm of cryptocurrencies, particularly with stablecoins. The company recently expanded its stablecoin settlement capabilities by adding support for two more USD-backed stablecoins, Global Dollar (“USDG”) and PayPal Holdings, Inc.’s PYUSD, through a partnership with Paxos. This move allows Visa to handle settlements across four stablecoins and four blockchains, including Ethereum, Solana, Stellar, and Avalanche [1].

This expansion positions Visa as a key player in the evolving digital payments ecosystem. Stablecoins are becoming increasingly relevant for global money movement due to their speed, transparency, and lower cost. By supporting multiple coins and blockchains, Visa can meet the needs of a wider range of partners, banks, fintechs, developers, and merchants, while helping to simplify and accelerate cross-border and on-chain transactions [1].

Ethereum co-founder Vitalik Buterin recently noted that Visa began with ideals similar to a decentralized autonomous organization (DAO), aiming for shared ownership and collaborative governance. However, he explained that Visa has evolved into a company widely viewed as highly centralized and profit-driven. Buterin’s comments highlight how even organizations founded on decentralized, community-driven principles can become centralized over time—a key issue that the crypto and blockchain community continues to address through new governance models and smart contract technology [2].

Despite this evolution, Visa has begun to embrace cryptocurrencies. The company’s integration of stablecoins and Web3 infrastructure signifies a shift in its approach to digital payments. This move opens new revenue streams from settlement fees, cross-border transaction volumes, and partnerships with crypto-native businesses. It also strengthens its value proposition to existing clients seeking flexible and modern treasury solutions [1].

From a financial perspective, Visa’s stock has gained 8.3% year to date, outperforming the broader industry and the S&P 500 Index. The company trades at a forward price-to-earnings ratio of 27.10X, up from the industry average of 21.44. The Zacks Consensus Estimate for Visa’s fiscal 2025 earnings implies a 13.7% rise year over year, followed by a 12.4% growth next year [1].

References:
[1] https://www.nasdaq.com/articles/stablecoins-assemble-visas-playbook-adds-more-pages-blockchains
[2] https://coinpedia.org/crypto-live-news/vitalik-buterin-says-visa-started-like-a-dao-now-seen-as-centralized/