These are the multipotent stem cells present only in red bone marrow and derived from mesoderm. They are responsible for production of platelets, white blood cells and red blood cells. HSCs give rise to myeloid lineage (which forms macrophages, mast cells, eosinophils, erythrocytes basophils, neutrophils and platelets) and lymphoid lineage (which forms plasma cells, T-lymphocytes and NK cells).