C-type natriuretic peptide (CNP) is a member of the natriuretic peptide family that is involved in a variety of homeostatic processes. Here we characterize the processing essential for the conversion of the precursor, human pro-CNP, to the biologically active hormone. In human embryonic kidney 293 and chondrosarcoma SW 1353 cells, recombinant pro-CNP was converted into a mature peptide intracellularly as detected by Western analysis. Expression of recombinant human corin, a proatrial natriuretic peptide convertase, did not enhance the processing of pro-CNP in these cells. The processing of pro-CNP was inhibited in the presence of an inhibitor of the endoprotease furin but was not affected by inhibitors of matrix metalloproteinases and tumor necrosis factor-␣ convertase. In furin-deficient human colon adenocarcinoma LoVo cells, no conversion of recombinant pro-CNP to CNP was detected. Expression of recombinant human furin in LoVo cells restored the ability of these cells to process pro-CNP. Furthermore, incubation of purified recombinant human furin with LoVo cell lysate containing pro-CNP led to the conversion of the precursor to a mature peptide. The furin-processed CNP was shown to be biologically active in a cell-based cGMP assay. These results demonstrate that furin is a critical enzyme for the processing of human pro-CNP.The natriuretic peptide family consists of three structurally related peptides: atrial natriuretic peptide (ANP), 1 brain or B-type natriuretic peptide (BNP), and C-type natriuretic peptide (CNP) (1-7). ANP and BNP are produced mainly in cardiomyocytes in the heart and are important in maintaining normal body fluid and sodium homeostasis. CNP is expressed in many tissues and cell types, including the brain, vascular endothelial cells, and chondrocytes (8 -13). The dominant receptor for CNP is natriuretic peptide receptor-B, whereas the receptor for ANP and BNP is natriuretic peptide receptor-A. The biological functions of CNP are apparently different from those of ANP and BNP. Studies have shown that CNP inhibits the proliferation of vascular smooth muscle cells in culture (14, 15) and prevents balloon injury-induced coronary artery restenosis in animal models (16 -18). Recent studies of CNPdeficient mice indicate that CNP plays an important role in chondrocyte differentiation and bone formation (11).The natriuretic peptides are synthesized as prepropeptides. The signal peptide is removed to form propeptides, but a further proteolytic cleavage of the propeptide is required to convert the precursor to a biologically active peptide. This activation mechanism is critical in regulation of the activity of the natriuretic peptides, but the enzyme(s) responsible for the conversion remained uncharacterized for many years. Recently, we identified a cardiac serine protease, corin (19), that is a member of the type II transmembrane serine protease family (20,21). In cell-based functional studies, we showed that corin converted pro-ANP to biologically active ANP in a highly sequence-specific manner (22...