diff --git a/src/database/contacts.rs b/src/database/contacts.rs
index 584069d06..11baa310a 100644
--- a/src/database/contacts.rs
+++ b/src/database/contacts.rs
@@ -1,5 +1,5 @@
 use dash_sdk::platform::Identifier;
-use rusqlite::params;
+use rusqlite::{Connection, params};
 
 #[derive(Debug, Clone)]
 pub struct ContactPrivateInfo {
@@ -11,7 +11,7 @@ pub struct ContactPrivateInfo {
 }
 
 impl crate::database::Database {
-    pub fn init_contacts_tables(&self) -> rusqlite::Result<()> {
+    pub fn init_contacts_tables(&self, conn: &Connection) -> rusqlite::Result<()> {
         let sql = "
             CREATE TABLE IF NOT EXISTS contact_private_info (
                 owner_identity_id BLOB NOT NULL,
@@ -24,7 +24,7 @@ impl crate::database::Database {
                 PRIMARY KEY (owner_identity_id, contact_identity_id)
             );
         ";
-        self.execute(sql, [])?;
+        conn.execute(sql, [])?;
         Ok(())
     }
 
diff --git a/src/database/dashpay.rs b/src/database/dashpay.rs
index 8f47924d4..6c9a0edde 100644
--- a/src/database/dashpay.rs
+++ b/src/database/dashpay.rs
@@ -161,105 +161,6 @@ impl crate::database::Database {
         Ok(())
     }
 
-    /// Initialize all DashPay-related database tables
-    pub fn init_dashpay_tables(&self) -> rusqlite::Result<()> {
-        // Profiles table
-        self.execute(
-            "CREATE TABLE IF NOT EXISTS dashpay_profiles (
-                identity_id BLOB PRIMARY KEY,
-                display_name TEXT,
-                bio TEXT,
-                avatar_url TEXT,
-                avatar_hash BLOB,
-                avatar_fingerprint BLOB,
-                public_message TEXT,
-                created_at INTEGER DEFAULT (unixepoch()),
-                updated_at INTEGER DEFAULT (unixepoch())
-            )",
-            [],
-        )?;
-
-        // Contacts table (extends the existing contact_private_info)
-        self.execute(
-            "CREATE TABLE IF NOT EXISTS dashpay_contacts (
-                owner_identity_id BLOB NOT NULL,
-                contact_identity_id BLOB NOT NULL,
-                username TEXT,
-                display_name TEXT,
-                avatar_url TEXT,
-                public_message TEXT,
-                contact_status TEXT DEFAULT 'pending',
-                created_at INTEGER DEFAULT (unixepoch()),
-                updated_at INTEGER DEFAULT (unixepoch()),
-                last_seen INTEGER,
-                PRIMARY KEY (owner_identity_id, contact_identity_id)
-            )",
-            [],
-        )?;
-
-        // Contact requests table
-        self.execute(
-            "CREATE TABLE IF NOT EXISTS dashpay_contact_requests (
-                id INTEGER PRIMARY KEY AUTOINCREMENT,
-                from_identity_id BLOB NOT NULL,
-                to_identity_id BLOB NOT NULL,
-                to_username TEXT,
-                account_label TEXT,
-                request_type TEXT NOT NULL CHECK (request_type IN ('sent', 'received')),
-                status TEXT DEFAULT 'pending' CHECK (status IN ('pending', 'accepted', 'rejected', 'expired')),
-                created_at INTEGER DEFAULT (unixepoch()),
-                responded_at INTEGER,
-                expires_at INTEGER
-            )",
-            [],
-        )?;
-
-        // Create index for faster queries
-        self.execute(
-            "CREATE INDEX IF NOT EXISTS idx_contact_requests_from
-             ON dashpay_contact_requests(from_identity_id)",
-            [],
-        )?;
-
-        self.execute(
-            "CREATE INDEX IF NOT EXISTS idx_contact_requests_to
-             ON dashpay_contact_requests(to_identity_id)",
-            [],
-        )?;
-
-        // Payments/transactions table
-        self.execute(
-            "CREATE TABLE IF NOT EXISTS dashpay_payments (
-                id INTEGER PRIMARY KEY AUTOINCREMENT,
-                tx_id TEXT UNIQUE NOT NULL,
-                from_identity_id BLOB NOT NULL,
-                to_identity_id BLOB NOT NULL,
-                amount INTEGER NOT NULL,
-                memo TEXT,
-                payment_type TEXT NOT NULL CHECK (payment_type IN ('sent', 'received')),
-                status TEXT DEFAULT 'pending' CHECK (status IN ('pending', 'confirmed', 'failed')),
-                created_at INTEGER DEFAULT (unixepoch()),
-                confirmed_at INTEGER
-            )",
-            [],
-        )?;
-
-        // Create index for faster queries
-        self.execute(
-            "CREATE INDEX IF NOT EXISTS idx_payments_from
-             ON dashpay_payments(from_identity_id)",
-            [],
-        )?;
-
-        self.execute(
-            "CREATE INDEX IF NOT EXISTS idx_payments_to
-             ON dashpay_payments(to_identity_id)",
-            [],
-        )?;
-
-        Ok(())
-    }
-
     // Profile operations
 
     pub fn save_dashpay_profile(
diff --git a/src/database/initialization.rs b/src/database/initialization.rs
index 63fa025d1..c686a69b5 100644
--- a/src/database/initialization.rs
+++ b/src/database/initialization.rs
@@ -392,9 +392,9 @@ impl Database {
         self.initialize_token_order_table(&conn)?;
         self.initialize_identity_token_balances_table(&conn)?;
 
-        // Initialize contacts table
-        self.init_contacts_tables()?;
-        self.init_dashpay_tables()?;
+        // Initialize contacts and DashPay tables while holding the same connection lock
+        self.init_contacts_tables(&conn)?;
+        self.init_dashpay_tables_in_tx(&conn)?;
 
         Ok(())
     }