Multipotent refers for the ability of a cell to develop into multiple cell types but not all cell types. For example, stem cells found in bone marrow can give rise to all blood cell types but not other cells. Multipotent cells can self-renew for long periods of time.
These cells work to replace other cells throughout an individual's lifetime. Multipotent cells are useful in transplants since it decreases the likelihood for a rejection by the individual's immune system.
Examples of multipotent cells are adult stem cells and cord blood stem cells.