Enables cysteine-type endopeptidase activity and thiol-dependent deubiquitinase. Involved in histone H2B conserved C-terminal lysine deubiquitination; regulation of circadian rhythm; and regulation of protein stability. Located in XY body; cytoplasm; and nucleus. Is expressed in embryo and trophectoderm. Orthologous to human USP7 (ubiquitin specific peptidase 7). [provided by Alliance of Genome Resources, Apr 2022]