Not all stablecoins are pegged to the U.S dollar, however. Some are pegged to the Euro, yen, or many other currencies.
There’s also crypto-collateralized stablecoins. These are backed by other cryptocurrencies, financial instruments and even things like land.
They are kind of complicated, but basically their diversification behind the scenes, is aimed to ensure the value is as locked in as possible – to you the end user, you don’t care as long as the value stays locked in.
Other stablecoins are pegged to commodities. We talked about the Petro dollar in a previous article.