My grandson has what appears to be frank blood in his urine 3 day old newborn?

Blood?? It would certainly be unusual for any newborn to have bloody urine but there are some events where this appears to be the case. The crystals formed by concentrated urine can form a rust colored stain in a diaper. Many interpret this to be blood, but a simple test can show it's not. True blood is commonly seen for a day or so after a circumcision. Contact the kids doc & see what s/he suggests you do.