A critical distinction between Taro and other stablecoins, like UST on Terra, is that Taro is only the infrastructure to enable the movement of assets over Lightning, be they stablecoins or some other asset. Taro is not a stablecoin, collateralized, algorithmic or otherwise, it is simply infrastructure to enable the movement of assets. Developers still need to build projects using Taro.
Source: https://www.coindesk.com/business/2022/04/05/lightning-labs-raises-70m-to-bring-stablecoins-to-bitcoin/?utm_medium=referral&utm_source=rss&utm_campaign=headlines