Multipotent neural stem cell (MNSC) progeny are induced to generate cells of the hematopoietic system by placing the MNSC progeny in a hematopoietic-inducing environment. The hematopoietic-inducing environment can be either ex vivo or in vivo. A mammal's circulatory system provides an in vivo environment that can induce xenogeneic, allogeneic, or autologous MNSC progeny to generate a full complement of hematopoietic cells. Transplantation of MNSC progeny provides an alternative to bone marrow and hematopoietic stem cell transplantation to treat blood-related disorders.