Saccharomyces cerevisiae Cet1p catalyzes the first step of mRNA capping, th
e hydrolysis of the gamma phosphate of triphosphate-terminated RNA to form
a 5' diphosphate end. The RNA triphosphatase activity of Cet1p is magnesium
-dependent and has a turnover number of 1 s(-1), Here we show that purified
recombinant Cet1p possesses a robust ATPase activity (K-m = 2.8 mu M; V-ma
x = 25 s(-1)) in the presence of manganese. Cobalt is: also an effective co
factor, but magnesium, calcium, copper, and zinc are not. Cet1p displays br
oad specificity in converting ribonucleoside triphosphates and deoxynucleos
ide triphosphates to their respective diphosphates. The manganese- and coba
lt-dependent nucleoside triphosphatase of Cet1p resembles the nucleoside tr
iphosphatase activities of the baculovirus LEF-4 and vaccinia virus D1 capp
ing enzymes. Cet1p, LEF-4, and D1 share three collinear sequence motifs, Mu
tational analysis establishes that conserved glutamate and arginine: side c
hains within these motifs are essential for the RNA triphosphatase and ATPa
se activities of Cet1p in vitro and for Cet1p function in vivo. These findi
ngs are in accord with the effects of single alanine mutations at analogous
positions of vaccinia capping enzyme. We suggest that the metal-dependent
RNA triphosphatases encoded by yeast and DNA viruses comprise a novel famil
y of phosphohydrolase enzymes with a common active site.