Stablecoins can enhance global carbon trading by improving clearing, settlement, liquidity, and transparency. Operating on transparent blockchain ledgers, they prevent double-counting and fraud, ensuring verifiable carbon credit transactions. Tokenized carbon credits can be traded or retired on-chain, boosting market efficiency and accessibility. Stablecoins enable faster, low-cost settlements, reducing transaction times from days to hours, which enhances liquidity for carbon markets traditionally lacking it. Financial institutions like National Australia Bank have issued stablecoins for carbon credit settlements, demonstrating real-world application. However, challenges like regulatory scrutiny, reserve transparency, and liquidity fragmentation across blockchains must be addressed to ensure stability and compliance. With proper frameworks, stablecoins could bridge traditional and decentralized finance, making carbon markets more inclusive and efficient.