Membrane-type matrix metalloproteinases (MT-MMPs) 1 are a newly described family of MMPs (1) that are distinguished by their localization to the plasma membranes of cells by a stretch of hydrophobic amino acids (transmembrane domain) (2). MTMMPs have been the subject of intense interest because of their role in activating a secreted MMP, progelatinase A, at the cell surface (1) and in directly cleaving collagen and other extracellular matrix proteins (3). Because activation of all soluble latent MMPs described to date is accompanied by cleavage of the N-terminal propeptide, thereby exposing the active site zinc by dissociation from the conserved cysteine in the prodomain, the assumption has been made that an analogous mechanism is responsible for the activation of MT1-MMP on the cell surface.Utilizing recombinant wild-type (wt) MT1-MMP cDNA and mutant MT1-MMP cDNAs transfected into cells lacking endogenous MT1-MMP, we have recently examined the function of the N-terminal propeptide domain of membrane-bound MT1-MMP. Contrary to expectation, we demonstrated that the Nterminal prodomain of wt MT1-MMP is required for function of the intact membrane-bound enzyme in COS-1 cells. Transfected COS-1 cells containing a deletion of the N-terminal propeptide domain of MT1-MMP or a chimeric construction in which the prodomain of MT1-MMP is substituted by the Nterminal propeptide domain of collagenase-3 were functionally inactive in terms of binding 125 I-labeled TIMP-2 to the cell surface and in initiating the activation of progelatinase A (4). These data led us to hypothesize that in its native plasma membrane-inserted form, the prodomain of MT1-MMP serves to facilitate the function of MT1-MMP as a receptor for TIMP-2 that subsequently immobilizes progelatinase A, thereby forming a trimolecular complex on the cell surface. A second free MT1-MMP molecule is then required to cleave the prodomain leading to activation of membrane-bound progelatinase A. The presence of excess TIMP-2 saturates all available MT1-MMP molecules, thereby interfering with progelatinase A activation. We proposed that conformational effects induced by the plasma membrane provide functional activity to latent cell surfacebound MT1-MMP without cleavage of the molecule (4, 5). It needs to be emphasized that our understanding of the importance of the propeptide domain of MT1-MMP was possible only because COS-1 cells are defective in proteolytic processing of certain newly synthesized proteins (6). Even following co-transfection of furin cDNA and MT1-MMP cDNA, COS-1 cells do not process latent MT1-MMP (63 kDa) to mature MT1-MMP (58 kDa) (7). In contrast, both the latent and mature forms of MT1-MMP are prominently displayed in several types of nontransfected cells capable of inducing progelatinase A activation (5, 8, 9); hence it was not previously possible to distinguish between the function of native versus mature enzyme.The goal of this report is to further clarify the role of the propeptide domain of MT1-MMP in maintaining the function of the plasma memb...