Umbilical cord blood is new-born blood that stays in the placenta, and in the rest of the umbilical cord, after the clamping of the umbilical cord. The placenta, together with umbilical blood, is afterwards disposed of. The placenta is an organ formed (created) by the embryo that functions as a nutrient carrier from mother’s blood to foetus blood, and after childbirth the placenta loses its function. A small portion of umbilical cord blood is deployed to examine the basic biochemical parameters, which determines the new born baby’s condition.

          New-born blood is markedly different from the blood of adult or older child. It is unique because it contains the same quantity of haematopoietic stem as is in the bone marrow.

          On the other hand, placental blood is absolutely inadequate for blood – transfusion. Red blood cells of umbilical cord blood contain a type of haemoglobin (foetal haemoglobin) that is not able to transport oxygen from the air. These red blood cells quickly die after the birth and they are replaced by red blood cell with adult (normal) haemoglobin. Quickly degrading red blood cells cause jaundice (icterus) of the newborn.