Blockchain-based financial services company Humaniq announced today that the company’s crowdfunded token sale has raised $5.2 million from 11,860 participants.

This pre-seed funding round came from what is called an “Initial Coin Offering” and involved the public crowd sale of HMQ digital tokens. Humaniq uses distributed ledger technology based on the Ethereum blockchain protocol to provide financial services to individuals who, for whatever reason, do not have bank accounts.

The company intends to bring these “unbanked” individuals into the global economy by using blockchain technology, smartphones, a biometric ID system and a mobile app. According to Humaniq, more than 2.5 billion people globally do not have access to financial services. It views its planned products as helping bring these people access to the digital global economy.

Dinis Guarda, chief executive officer of Humaniq, said he believes this is “the first innovation blockchain humanitarian cryptocurrency token crowd sale in the history of ICOs.” He sees the crowd sale as an investment “dedicated to improving the lives of people in emerging economies and offering them financial inclusion using tech for social good.”

Holders of Humaniq’s HMQ digital tokens can use them to participate in the company’s financial infrastructure by loaning them to unbanked individuals using the app as well as exchange them for local currencies or digital currencies such as Bitcoin. This is how Humaniq hopes to design its own internal economy to build up financial services and an exchange network for users.

Humaniq’s ICO crowdfunding campaign began on April 6 and came to a close April 27. The company intends to use the money to build out its base and fund the production of its flagship products: a mobile app and an exchange platform to be launched later in 2017.

In September 2017, Humaniq will begin expanding the project into underdeveloped regions in Africa, Asia and Latin America. In 2018, the company also expects to better decentralize its structure through investments in virtual cards and partnerships with financial technology startups.

“We have big plans for this year,” said Dmitry Kaminskiy, Humaniq’s co-founder and executive chairman. “This initial pre-seed round demonstrated great interest in the Humaniq mission and vision. The fact that nearly 12,000 people participated confirmed there’s a great demand and it is a very strong proof of concept. Soon we will launch Humaniq’s Fintech-Blockchain accelerator.”

Although still being refined, Humaniq’s mobile app has been in testing since its release on March 15. It is currently available for iOS and Android devices and is in the hands of what Humaniq calls ambassadors and evangelists expected to help push local adoption through hands-on training.

The app is designed to provide any individual a portal to banking services via a smartphone and an internet connection. It will be protected by a number of security methods, including biometric options such as face recognition ID and voice ID, as well as verification of the device’s own unique identity.

Once logged in, users will be given access to a variety of financial services, including loans, with controls on what currency and what amount to give and on what terms; insurance, insuring or getting insurance instantly; and finding work or workers, via a network for hiring freelancers or being hired without the need for a middleman.

Image: Humaniq