Phosphacan, a soluble nervous tissue-specific chondroitin sulfate proteoglycan, is an alternative splicing product representing the entire extracellular domain of a transmembrane receptor-type protein-tyrosine phosphatase (RPTP/) that also occurs as a chondroitin sulfate proteoglycan in brain. We have previously demonstrated that phosphacan binds with high affinity to neural cell adhesion molecules (Ng-CAM/L1 and N-CAM) and to the extracellular matrix protein tenascin and that it is a potent inhibitor of cell adhesion and neurite outgrowth. Tryptic digests of 125 I-labeled phosphacan contain two glycopeptides that bind to Ng-CAM/L1, N-CAM, and tenascin. The larger of these (17 kDa) begins at Gln-209 near the end of the carbonic anhydrase-like domain of phosphacan/RPTP/, whereas a 13-kDa glycopeptide begins at His-361 located in the middle of the fibronectin type III-like domain. Treatment of phosphacan with peptide N-glycosidase under nondenaturing conditions reduced its binding to the neural cell adhesion molecules and tenascin by 65-75%, whereas endo--N-acetylglucosaminidase H had no effect, and peptide N-glycosidase treatment both decreased the molecular sizes of the tryptic peptides to ϳ11 kDa and abolished their binding. Based on the amino acid sequence of phosphacan, it can be concluded that each of the tryptic peptides contains one potential N-glycosylation site (at Asn-232 and Asn-381), and analyses of the isolated glycopeptides demonstrated the presence of sialylated complex-type oligosaccharides. Our results therefore indicate that the interactions of phosphacan/RPTP/ with neural cell adhesion molecules and tenascin are mediated by asparagine-linked oligosaccharides present in their carbonic anhydrase-and fibronectin type III-like domains.We have previously described the isolation and biochemical properties of phosphacan, a nervous tissue-specific chondroitin sulfate proteoglycan that is synthesized by astrocytes (Rauch et al., 1991). Cloning of phosphacan (Maurel et al., 1994) demonstrated that it is an alternative splicing product representing the entire extracellular domain of a receptor-type protein-tyrosine phosphatase (RPTP) 1 named RPTP/ (Krueger and Saito, 1992;Levy et al., 1993;Maurel et al., 1995). A keratan sulfate-containing glycoform (phosphacan-KS) also occurs in postnatal brain (Rauch et al., 1991;Maurel et al., 1994; MeyerPuttlitz et al., 1995). Phosphacan binds reversibly and with high affinity to the neural cell adhesion molecules Ng-CAM/L1 and N-CAM (K d ϳ0.1 nM) and to the extracellular matrix protein tenascin (K d ϭ 3 nM), but not to over a dozen other cell membrane and extracellular matrix proteins tested Grumet et al., 1994). These studies also demonstrated that phosphacan is a potent inhibitor of neuronal and glial adhesion and of neurite outgrowth. Because of its potential importance both as a developmentally regulated extracellular matrix proteoglycan of nervous tissue and as the ligand-binding domain of a transmembrane protein-tyrosine phosphatase (which also occurs in...