The answer: it depends.
Not all stablecoins use the same backing model:
💵 Fiat-collateralized - held in cash/cash-equivalents (e.g. short-term treasuries)
🪙 Crypto-collateralized - backed by other crypto assets, often over-collateralized
⚙️ Algorithmic - supply adjusted by code rather than a reserve
💡 Takeaway: "stablecoin" describes the goal (price stability), not one single mechanism. Always check how a specific stablecoin is actually backed before assuming.