Recombinant rat insulysin was shown to cleave the internally quenched fluorogenic peptide 2-aminobenzyl-GGFLRKVGQ-ethylenediamine-2,4-dinitrophenol at the R-K bond, exhibiting a K m of 13 M and a V max of 2.6 mol min ؊1 mg ؊1 . Derivatives of this peptide in which the P 2 leucine or the P 2 ' valine were replaced with other residues were used to probe the subsite specificity of the enzyme. Varying the P 2 residue produced a 4-fold range in K m and a 7-fold range in k cat . The nature of the P 2 residue had a significant effect on the site of cleavage. Leucine, isoleucine, valine, and aspartate produced cleavage at the R-K bond. Asparagine produced 36% cleavage at the N-R bond and 64% cleavage at the R-K bond, whereas with alanine or serine the A-R and S-R bonds were the major cleavage sites. With tyrosine, phenylalanine, methionine, or histidine representing the varied residue X, cleavages at F-X, X-R, and R-K were seen, whereas with tryptophan equal cleavage occurred at the F-W and W-R bonds. Variable P 2 ' residues produce less of a change in both K m and k cat and have little influence on the cleavage site. Exceptions are phenylalanine, tyrosine, leucine, and isoleucine, which in addition to producing cleavage at the R-K bond, produce significant cleavage at the L-R bond. Alanine and tyrosine were unique in producing cleavage at the F-L bond. Taken together, these data suggest that insulysin specificity is directed toward the amino side of hydrophobic and basic residues and that the enzyme has an extended substrate binding site.Insulysin (insulin-degrading enzyme; EC 3.4.24.56) was first described as a proteolytic enzyme capable of degrading insulin (1). The enzyme is primarily located in the cytosol and peroxisomes (2), although its presence on the cell membrane (3, 4) and its secretion (5) have recently been reported. Although insulysin has the highest affinity for insulin, the enzyme has been shown to cleave a number of other physiological peptides in vitro including glucagon (6), insulin-like growth factors I and II (7), atrial natriuretic peptide (8), and transforming growth factor-␣ (9). The finding of a variety of substrates for the enzyme, as well as its presence at high levels in insulin-insensitive cells, suggest that insulysin has a variety of physiological functions. Those proposed include processing of insulin for antigen recognition (10), regulation of the multicatalytic proteinase (11), and modulation of steroid receptor action (12).Insulysin was shown to be identical to an enzymatic activity referred to as ␥-endorphin-generating enzyme, an enzyme that converts -endorphin to ␥-endorphin (Ϫendorphin 1-17) and Ϫendorphin 1-18 (13). In that study GRF, dynorphin B 1-13, dynorphin A 1-17, and pancreastatin 1-49 were shown also to be substrates. Recent interest in insulysin stems from its ability to degrade the amyloid peptides A 1Ϫ40 and A 1-42 (5, 14 -16) and its possible role as an enzyme involved in the clearance of amyloid peptides in the brain. Decreases in insulysin activity in the brains...