As soon as a new baby is born, the umbilical cord that connects the baby to the mother is discarded. During pregnancy, this cord is the main source of nutrition for the baby but on delivery this tissue mass is cut and discarded. This is now changing since the time researchers have realized that umbilical cord blood is a major source of stem cells. Stem cells are unspecialized blood cells that produce all other blood cells, including blood-clotting platelets and red and white blood cells. These stem cells are essential to help regenerate blood in the human body. It is an effective cure for diseases that create a blood or immune disorder.

Today, there are over 45 genetic diseases that have been identified as being curable by stem cell transplant. Umbilical cord blood is used in this transplant just like bone marrow. The only difference is that unlike a bone marrow transplant, the umbilical cord blood is of one's own self and is easier to match with the body. When high amount of radiation or cancer-killing drugs destroy the stem cells of the affected patients, stem cells can help rebuild the supply.

Umbilical cord blood is very small in volume, measuring only about 90ml. It has to be extracted immediately after the birth of the child and is stored cryogenically by private or public banks in the same manner as normal blood banks do. The blood is stored only with parental consent and can be kept for private as well as donated to a public bank. Since cord blood use for stem cell regeneration might be more effective and cheaper than using bone marrow an attempt is also being made to develop a cord blood donation program much like the bone marrow donor program.