Described herein are hydrogel-based nanoparticles which release nitric oxide (NO) or other bioactive forms of NO including nitrosothiols, nitrofatty acids and dinitrogen trioxide into stored red blood cells (RBCs). Also provided herein is a method for using hydrogel-based nanoparticles to supplement stored RBCs with NO to enhance red blood cell (RBC) storage time, improve survivability in circulation, minimize toxicity associated with transfusion, and improve transfusion safety by eliminating infective organisms in stored blood.