Red capped Goldfish first appeared in China during the Ming Dynasty (1368-1644 A.D.) in about 1590. These were probably of the egg-fish type, lacking in a dorsal fin, and this breed survives today as the Red Stamp or Seal Head.

The Redcap Oranda is a much more recent breed; the first Oranda (Dutch Lionhead or Oranda Shishigashira) not being known until the 1890's in the Kansai area in Japan. Redcap egg-fish were imported into Japan after World War II and Redcap Orandas were produced subsequently.

The ideal Redcap Oranda should be pearly white with a deep carmine Wen (or Hood) sitting like a beret on top of the head. The head growth should be confined to this area and this type is known as Goose-head, Hi-head or Hi-cap. Tail and anal fins should be paired and the body should be deep and strong.

The Japanese word to describe all red capped fish (including koi) is Tancho, Tancho Zuru being the Japanese Pearl Crane (Grus japonensis), a white bird with red head, which, according to Japanese folklore, is always happy and lives for one thousand years. The Chinese know these fish as Hon Tou which means "good fortune on top of the head".

Many fine Redcap Orandas are bred on small farms in Hong Kong and mainland China. One famous Redcap breeder is said to raise only six perfect fish per year. These are kept in delicate floating harnesses which prevent the fish damaging their fins on the bottom of their container. They are said to have heads like ripe tomatoes!