By Alex Botha

16 July 2026

The umbilical cord that attaches a baby to their mother is typically discarded as medical waste when a baby is born, but tucked inside the cord is something valuable: a collection of stem cells that could one day help treat serious diseases. Parents are choosing to bank these cells at birth, as a form of biological insurance for their child’s future health.  

There are two options available at birth for storage: cord blood banking and cord tissue banking. While they sound similar, they store very different types of stem cells, therefore offering different potential benefits. Understanding the difference can help you make an informed decision for your family’s future.  

What is cord blood?  

Cord blood refers to the blood that remains in the umbilical cord immediately after birth. This blood is uniquely rich in haematopoietic stem cells (HSCs); these are the master cells responsible for producing every type of blood cell in the body, including red blood cells, white blood cells and platelets.  

What makes haematopoietic stem cells so remarkable is their ability to self-renew and differentiate, meaning they can create copies of themselves and transform into any of the specialised blood and immune cells the body needs. This makes them extraordinarily powerful tools in treating diseases where the blood or immune system has broken down. These cells are used in treatment for more than 80 conditions, including leukaemia, lymphoma, sickle cell disease and various immune disorders.  

How is cord blood collected?  

Collection is painless and non-invasive; it occurs after the baby is born and the cord has been clamped. The blood is drained from the cord into a sterile collection bag, processed at a laboratory, and then cryogenically frozen for long-term storage. The entire collection process usually only takes a few minutes and poses no risk to mother or baby.  

What can cord blood treat?  

Cord blood stem cells are primarily used in stem cell transplants to replace diseased or damaged blood and immune systems with healthy new cells. Conditions currently treated include 

  • Blood cancers – leukaemia, lymphoma and myeloma 
  • Bone Marrow Failure syndromes – such as aplastic anaemia 
  • Inherited disorders – sickle cell disease and thalassaemia 
  • Immune deficiency diseases – Severe combined immunodeficiency (SCID)  
  • Certain metabolic disorders – Hurler syndrome and Krabbe disease 

What is cord tissue? 

Cord tissue refers to the physical umbilical cord itself, specifically the gelatinous connective tissue called Wharton’s Jelly that surrounds the blood vessels within the cord. This tissue is a powerful source of Mesenchymal Stem Cells (MSCs).  

MSCs are a completely different type of stem cell to those found in cord blood. Rather than producing blood cells, MSCs are multi-tissue builders. They have a unique ability to change into a variety of cell types – including bone and cartilage, and have extensive immune-modulating properties - making them of interest to researchers exploring treatment for conditions far beyond blood diseases. They are not limited to one system of the body; instead, they are potentially relevant to many. Since these cells are harvested from a newborn source, they are biologically younger and more vigorous than MSCs collected from adult tissue, allowing them greater capacity to divide, adapt and repair.  

Beyond their ability to transform into different cell types, MSCs possess another extraordinary quality: they are potent modulators of the immune system. They can sense inflammation in the body and respond by releasing signalling molecules that calm overactive immune responses, reduce tissue damage and recruit other repair cells to the area. This anti-inflammatory capability is a key reason why MSC research has expanded so dramatically, particularly in the fields of autoimmune disease, neurological injury, and chronic inflammatory conditions.  

How is cord tissue collected?  

Like cord blood, collection occurs immediately after birth and is completely safe for mother and baby. After the cord is cut, a segment of the cord itself is collected, placed in a sterile container, transported to a laboratory, and then cryogenically frozen for long-term storage. 

What could cord tissue treat?  

  • MSCs are being explored for conditions such as  
  • Orthopaedic conditions – cartilage repair, osteoarthritis, bone regeneration  
  • Neurological conditions – cerebral palsy, autism spectrum disorder, spinal cord injury, multiple sclerosis 
  • Autoimmune diseases, Crohn’s disease, lupus  
  • Heart disease – repair of cardiac tissue following a heart attack  
  • Graft-versus-host disease – a serious complication following bone marrow transplants  

The reason MSCs are intensively researched is that they appear to act as biological peacekeepers – dampening harmful immune responses, reducing inflammation, and stimulating the body’s own repair processes. This makes them potentially applicable across a far wider range of diseases than haematopoietic stem cells.  

MSCs also have a notable advantage when it comes to transplantation; they are considered immune-privileged, meaning they are far less likely to be rejected by a recipient’s immune system than other cell types. This opens the door to potential therapies where one person’s MSCs could be used to treat many different patients.  

Cord Blood vs. Cord Tissue:  

  Cord Blood  Cord Tissue 
Stem Cell Type  Produces blood and immune cells   Builds structural tissues, modulates immunity  
Primary function  Produces blood and immune cells   Builds structural tissues like cartilage, bone, muscle, and nerve 
Conditions targeted  Blood cancers, immune disorders  Neurological, orthopaedic, autoimmune, cardiac  
Risk to baby/mom  None  None 

 

Should you bank both?  

When it comes to protecting your child’s future health, understanding your banking options is an important first step.  

Banking both cord blood and cord tissue together offers the most comprehensive biological safety net available at birth. Since the two contain entirely different types of stem cells, they cover different areas of therapies, meaning banking both maximises the range of conditions your child could potentially be treated for in the future, Since both are collected at the same time during the same brief window immediately after birth, there is no additional procedure and no risk to mother and baby.  

Although cord blood banking has a long history, the MSCs found in cord tissue are considered to have a wider long-term therapeutic potential. Cord tissue MSCs are also biologically unique in that they are immune privileged, meaning they are less likely to be rejected by the body, which opens the door to broader future treatment applications. Whether you choose to bank both cord blood and tissue or cord tissue alone, you are making a proactive decision at the one moment in your child’s life where the opportunity exists.