The report "Liquidity Management in a Multi-Currency Corridor Network (MASOXY) by J.P. Morgan" focuses on the simulation of a shared corridor network for cross-border payments. The simulation aims to facilitate cross-border payments, with expected benefits such as improved efficiency and reduced costs. The simulation design includes the use of Distributed Ledger Technology (DLT) accounts, a CBDC Smart Contract, and a Liquidity Pool Manager (LPM) Smart Contract. The network topology is designed to ensure privacy and the simulation includes use cases such as cross-border payments with currency exchange and cross-currency payment versus payment (PvP) transactions. The simulation results show that the shared corridor network can effectively facilitate cross-border payments, but there are still lessons to be learned, such as the need for interoperability and standards/rulebook, and the importance of FX and governance. The conclusion is that the shared corridor network has the potential to improve cross-border payments, but further development and testing is needed.
