diff --git a/CHANGELOG.md b/CHANGELOG.md
index 3ef3acb8..53fde3b0 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -1,13 +1,18 @@
 # Changelog
 
+## 1.0.0-BETA9
+
+* Re-enable SKIE `SuspendInterop`
+* Move transaction functions out of `PowerSyncTransactionFactory` to avoid threading issues in Swift SDK
+
 ## 1.0.0-BETA8
 
-* Disable Skie `SuspendInterop` plugin to fix overriding `suspend` functions in Swift
+* Disable SKIE `SuspendInterop` plugin to fix overriding `suspend` functions in Swift
 
 ## 1.0.0-BETA7
 
 * Update supabase connector to use supabase-kt version 3
-* Handle postgres error codes in supabase connector
+* Handle Postgres error codes in supabase connector
 
 ## 1.0.0-BETA6
 
diff --git a/PowerSync/build.gradle.kts b/PowerSync/build.gradle.kts
index 0945296a..c7e5e2af 100644
--- a/PowerSync/build.gradle.kts
+++ b/PowerSync/build.gradle.kts
@@ -41,16 +41,6 @@ kotlin {
     }
 }
 
-skie {
-    features {
-        group {
-            // We turn this off as the suspend interop feature results in
-            // threading issues when implementing SDK in Swift
-            SuspendInterop.Enabled(false)
-        }
-    }
-}
-
 kmmbridge {
     artifactManager.set(SonatypePortalPublishArtifactManager(project, repositoryName = null))
     artifactManager.finalizeValue()
diff --git a/core/src/commonMain/kotlin/com/powersync/db/PowerSyncDatabaseImpl.kt b/core/src/commonMain/kotlin/com/powersync/db/PowerSyncDatabaseImpl.kt
index f7dbbae8..6bb096ab 100644
--- a/core/src/commonMain/kotlin/com/powersync/db/PowerSyncDatabaseImpl.kt
+++ b/core/src/commonMain/kotlin/com/powersync/db/PowerSyncDatabaseImpl.kt
@@ -4,6 +4,7 @@ import app.cash.sqldelight.async.coroutines.awaitAsList
 import app.cash.sqldelight.async.coroutines.awaitAsOne
 import app.cash.sqldelight.db.SqlCursor
 import co.touchlab.kermit.Logger
+import co.touchlab.skie.configuration.annotations.SuspendInterop
 import com.powersync.DatabaseDriverFactory
 import com.powersync.PowerSyncDatabase
 import com.powersync.PsSqlDriver
diff --git a/core/src/commonMain/kotlin/com/powersync/db/internal/InternalDatabaseImpl.kt b/core/src/commonMain/kotlin/com/powersync/db/internal/InternalDatabaseImpl.kt
index 74785480..9c5fb369 100644
--- a/core/src/commonMain/kotlin/com/powersync/db/internal/InternalDatabaseImpl.kt
+++ b/core/src/commonMain/kotlin/com/powersync/db/internal/InternalDatabaseImpl.kt
@@ -9,7 +9,7 @@ import app.cash.sqldelight.coroutines.mapToList
 import app.cash.sqldelight.db.QueryResult
 import app.cash.sqldelight.db.SqlCursor
 import app.cash.sqldelight.db.SqlPreparedStatement
-import com.powersync.PowerSyncTransaction
+import com.persistence.PowersyncQueries
 import com.powersync.PsSqlDriver
 import com.powersync.persistence.PsDatabase
 import com.powersync.utils.JsonUtil
@@ -27,11 +27,36 @@ internal class InternalDatabaseImpl(
     private val scope: CoroutineScope,
 ) : InternalDatabase {
     override val transactor: PsDatabase = PsDatabase(driver)
-    override val queries = transactor.powersyncQueries
+    override val queries: PowersyncQueries = transactor.powersyncQueries
+    private val transaction =
+        object : PowerSyncTransaction {
+            override suspend fun execute(
+                sql: String,
+                parameters: List<Any?>?,
+            ): Long = this@InternalDatabaseImpl.execute(sql, parameters ?: emptyList())
+
+            override suspend fun <RowType : Any> get(
+                sql: String,
+                parameters: List<Any?>?,
+                mapper: (SqlCursor) -> RowType,
+            ): RowType = this@InternalDatabaseImpl.get(sql, parameters ?: emptyList(), mapper)
+
+            override suspend fun <RowType : Any> getAll(
+                sql: String,
+                parameters: List<Any?>?,
+                mapper: (SqlCursor) -> RowType,
+            ): List<RowType> = this@InternalDatabaseImpl.getAll(sql, parameters ?: emptyList(), mapper)
+
+            override suspend fun <RowType : Any> getOptional(
+                sql: String,
+                parameters: List<Any?>?,
+                mapper: (SqlCursor) -> RowType,
+            ): RowType? = this@InternalDatabaseImpl.getOptional(sql, parameters ?: emptyList(), mapper)
+        }
 
     companion object {
-        const val POWERSYNC_TABLE_MATCH = "(^ps_data__|^ps_data_local__)"
-        const val DEFAULT_WATCH_THROTTLE_MS = 30L
+        const val POWERSYNC_TABLE_MATCH: String = "(^ps_data__|^ps_data_local__)"
+        const val DEFAULT_WATCH_THROTTLE_MS: Long = 30L
     }
 
     init {
@@ -159,13 +184,11 @@ internal class InternalDatabaseImpl(
 
     override suspend fun <R> readTransaction(callback: suspend (PowerSyncTransaction) -> R): R =
         transactor.transactionWithResult(noEnclosing = true) {
-            val transaction = PowerSyncTransaction(this@InternalDatabaseImpl)
             callback(transaction)
         }
 
     override suspend fun <R> writeTransaction(callback: suspend (PowerSyncTransaction) -> R): R =
         transactor.transactionWithResult(noEnclosing = true) {
-            val transaction = PowerSyncTransaction(this@InternalDatabaseImpl)
             callback(transaction)
         }
 
diff --git a/core/src/commonMain/kotlin/com/powersync/db/internal/PowerSyncTransactionFactory.kt b/core/src/commonMain/kotlin/com/powersync/db/internal/PowerSyncTransactionFactory.kt
deleted file mode 100644
index f5a32508..00000000
--- a/core/src/commonMain/kotlin/com/powersync/db/internal/PowerSyncTransactionFactory.kt
+++ /dev/null
@@ -1,35 +0,0 @@
-package com.powersync
-
-import app.cash.sqldelight.db.SqlCursor
-import com.powersync.db.internal.InternalDatabaseImpl
-import com.powersync.db.internal.PowerSyncTransaction
-
-internal fun PowerSyncTransaction(internalDatabase: InternalDatabaseImpl): PowerSyncTransaction {
-    val transaction =
-        object : PowerSyncTransaction {
-            override suspend fun execute(
-                sql: String,
-                parameters: List<Any?>?,
-            ): Long = internalDatabase.execute(sql, parameters ?: emptyList())
-
-            override suspend fun <RowType : Any> get(
-                sql: String,
-                parameters: List<Any?>?,
-                mapper: (SqlCursor) -> RowType,
-            ): RowType = internalDatabase.get(sql, parameters ?: emptyList(), mapper)
-
-            override suspend fun <RowType : Any> getAll(
-                sql: String,
-                parameters: List<Any?>?,
-                mapper: (SqlCursor) -> RowType,
-            ): List<RowType> = internalDatabase.getAll(sql, parameters ?: emptyList(), mapper)
-
-            override suspend fun <RowType : Any> getOptional(
-                sql: String,
-                parameters: List<Any?>?,
-                mapper: (SqlCursor) -> RowType,
-            ): RowType? = internalDatabase.getOptional(sql, parameters ?: emptyList(), mapper)
-        }
-
-    return transaction
-}
diff --git a/gradle.properties b/gradle.properties
index 931868e4..62b5f235 100644
--- a/gradle.properties
+++ b/gradle.properties
@@ -17,7 +17,7 @@ development=true
 RELEASE_SIGNING_ENABLED=true
 # Library config
 GROUP=com.powersync
-LIBRARY_VERSION=1.0.0-BETA8
+LIBRARY_VERSION=1.0.0-BETA9
 GITHUB_REPO=https://github.com/powersync-ja/powersync-kotlin.git
 # POM
 POM_URL=https://github.com/powersync-ja/powersync-kotlin/
diff --git a/gradle/libs.versions.toml b/gradle/libs.versions.toml
index d0ae66ac..86c48d74 100644
--- a/gradle/libs.versions.toml
+++ b/gradle/libs.versions.toml
@@ -29,7 +29,7 @@ compose-preview = "1.7.2"
 # plugins
 android-gradle-plugin = "8.5.1"
 kmmBridge = "0.5.7"
-skie = "0.9.3"
+skie = "0.9.5"
 maven-publish = "0.27.0"
 download-plugin = "5.5.0"
 grammerKit = "0.1.12"