We have identified a transmembrane collagen, collagen XXIII, in rat prostate carcinoma cells. Differential display of mRNA expression in prostate carcinoma sublines with varying metastatic potential revealed overexpression of this transcript in the metastatic AT6.1 subline. cDNA cloning identified a 2733-bp transcript from AT6.1 RNA, encoding a protein of 532 amino acids, together with a 3067-bp human homologue, resulting in a 540-amino acid protein. Collagen XXIII is predicted to be a type II membrane protein consisting of an aminoterminal cytoplasmic domain, a transmembrane region, and three collagenous domains flanked by short noncollagenous domains. Collagen XXIII is a new member of the transmembrane collagen family, showing structural homology with the transmembrane collagens XIII and XXV. We present evidence that collagen XXIII is expressed as a ϳ75-kDa protein at the cell surface and that it can be cleaved by furin protease activity. Cleavage results in a ϳ60-kDa soluble protein that forms a multimeric complex and exhibits a low affinity interaction with heparin.The extracellular environment consists of a complex mix of matrix macromolecules together with sequestered growth factors. Each of these components can interact with cells to influence their function and behavior. Proteolytic cleavage of these molecules can release soluble growth factors and matrix fragments that also possess biological activity. The collagen superfamily represents the most abundant group of extracellular matrix macromolecules, and it is becoming clear that this family encompasses a structurally and functionally diverse group of proteins (1). Collagens can be divided into two major groups: fibrillar and nonfibrillar, with a key characteristic of both being the presence of a repeating Gly-Xaa-Yaa, where Xaa and Yaa are frequently proline and hydroxyproline, respectively. A subfamily of the nonfibrillar collagens is the transmembrane collagens. This group currently consists of three members, collagens XIII and XVII and the recently identified collagen XXV, each containing a single-pass hydrophobic transmembrane domain. Both collagens XIII and XVII show widespread distribution in epithelia (2, 3), whereas collagen XXV is specifically overexpressed in neurons (4). Functionally both collagen XIII and XVII have been co-localized in cell adhesions, collagen XVII has been co-localized in hemidesmosomes (5), collagen XIII has been co-localized in focal contacts (2), and their extracellular domains have been shown to support cell adhesion (6 -8). We report here the cloning of a new transmembrane collagen overexpressed in rat prostate adenocarcinoma cells and characterize its cellular localization, its cleavage, and the properties of its soluble ectodomain.