Many peptide hormones and neuropeptides are processed by members of the sub
tilisin-like family of prohormone convertases (PCs), which are either solub
le or integral membrane proteins. PC1 and PC2 are soluble PCs that are prim
arily localized to large dense core vesicles in neurons and endocrine cells
. We examined whether PC1 and PC2 were active when expressed as membrane-te
thered proteins, and how tethering to membranes alters the biosynthesis, en
zymatic activity, and intracellular routing of these PCs. PC1 and PC2 chime
ras were constructed using the transmembrane domain and cytoplasmic domain
of the amidating enzyme, peptidylglycine cu-amidating monooxygenase (PAM).
The membrane-tethered PCs were rerouted from large dense core vesicles to t
he Golgi region. In addition, the chimeras were transiently expressed at th
e cell surface and rapidly internalized to the Golgi region in a fashion si
milar to PAM. Membrane-tethered PC1 and PC2 exhibited changes in pro domain
maturation rates, N-glycosylation, and in the pH and calcium optima requir
ed for maximal enzymatic activity against a fluorogenic substrate. In addit
ion, the PC chimeras efficiently cleaved endogenous pro-opiomelanocortin to
the correct bioactive peptides. The PAM transmembrane domain/cytoplasmic d
omain also prevented stimulated secretion of pro-opiomelanocortin products
in AtT-20 cells.