The present invention is directed to a novel dipeptidylaminopeptidase isolated from the cellular slime mold, Dictyostelium discodeum. The novel DAP enzyme, dDAP, displays an activity which is somewhat similar to both DAP-I and DAP-III but is highly distinctive from these enzymes in physical and other enzymatic characteristics. The invention is also directed to methods for using the dDAP enzyme to remove dipeptides from the N-terminus of recombinantly produced precursor proteins or peptides. In addition, the invention relates to methods for isolating and purifying the dDAP enzyme from cultures of D. discoedeum.
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