-Catenin is a structural component of adherens junctions, where it binds to the cytoplasmic domain of cadherin cell adhesion molecules. -Catenin is also a transcriptional coactivator in the Wnt signaling pathway, where it binds to Tcf/Lef family transcription factors. In the absence of a Wnt signal, nonjunctional -catenin is present in a multiprotein complex containing the proteins axin and adenomatous polyposis coli (APC), both of which bind directly to -catenin. The thermodynamics of -catenin binding to E-cadherin, Lef-1, APC, axin, and the transcriptional inhibitor ICAT have been determined by isothermal titration calorimetry. Most of the interactions showed large, unfavorable entropy changes, consistent with these ligands being natively unstructured in the absence of -catenin. Phosphorylation of serine residues present in a sequence motif common to cadherins and APC increased the affinity for -catenin 300 -700-fold, and surface plasmon resonance measurements revealed that phosphorylation of E-cadherin both enhanced its on rate and decreased its off rate. The effects of the N-and C-terminal "tails" that flank the -catenin armadillo repeat domain on ligand binding have also been investigated using constructs lacking one or both tails. Contrary to earlier studies that employed less direct binding assays, the tails did not affect the affinity of -catenin for tight ligands such as E-cadherin, Lef-1, and phosphorylated APC. However, the -catenin C-terminal tail was found to decrease the affinity for the weaker ligands APC and axin, suggesting that this region may have a regulatory role in -catenin degradation.The protein -catenin serves several roles in the development and maintenance of multicellular organisms. It is a structural component of cell-cell contacts and is also a transcriptional coactivator in the Wnt signaling pathway that controls cell fate determination. The multiple functions of this protein depend upon its interactions with several distinct protein ligands. In adherens junctions, -catenin interacts with the cytoplasmic domain of classical cadherins and with ␣-catenin, which functionally connects the cadherin-catenin complex to the actin cytoskeleton. The levels of nonjunctional -catenin are determined by the presence or absence of Wnt growth factor stimulation. In the absence of a Wnt, cytosolic -catenin is targeted for degradation by a multiprotein complex containing axin and the adenomatous polyposis coli protein (APC).3 The axin-APC complex binds to -catenin and also recruits casein kinase 1 (CK1) and glycogen synthase kinase-3 (GSK-3). These kinases phosphorylate -catenin, flagging it for destruction by the ubiquitin-proteosome pathway. In the presence of a Wnt signal, phosphorylation of -catenin is inhibited. The resulting stabilized pool of -catenin translocates to the nucleus, where it binds to the Tcf/Lef family transcription factors. The -catenin-Tcf complex recruits general transcription factors, resulting in a complex that activates Wnt target genes. The primary s...