It might sound strange that there are different types of stablecoins considering all of them exist to preserve value – typically pegged to the U.S. dollar.
The thing is, not all companies are equally trusted. The first major stablecoin was Tether USD. They claim to be backed by billions of dollars, but no one really knows for sure(it’s controversial).
Then came Binance USD. People kind of trust Binance so Binance said “why not make our own”. Also, there’s USDC. USDC was brought to you by Coinbase. It’s kind of like Binance: They’re regulated, trusted, so why don’t we just make our own stablecoin?
They can exist on many different chains also. With Ethereum, for example, there’s the ERC20 token, but we won’t bore you with the details.