diff --git a/Cargo.lock b/Cargo.lock
index cdbabf2f769d..96edba7ae509 100644
--- a/Cargo.lock
+++ b/Cargo.lock
@@ -3901,7 +3901,7 @@ dependencies = [
 [[package]]
 name = "postgres"
 version = "0.19.4"
-source = "git+https://github.com/neondatabase/rust-postgres.git?branch=neon#988d0ddb4184c408fa7fc1bd0ecca7993c02978f"
+source = "git+https://github.com/neondatabase/rust-postgres.git?branch=neon#20031d7a9ee1addeae6e0968e3899ae6bf01cee2"
 dependencies = [
  "bytes",
  "fallible-iterator",
@@ -3914,7 +3914,7 @@ dependencies = [
 [[package]]
 name = "postgres-native-tls"
 version = "0.5.0"
-source = "git+https://github.com/neondatabase/rust-postgres.git?branch=neon#988d0ddb4184c408fa7fc1bd0ecca7993c02978f"
+source = "git+https://github.com/neondatabase/rust-postgres.git?branch=neon#20031d7a9ee1addeae6e0968e3899ae6bf01cee2"
 dependencies = [
  "native-tls",
  "tokio",
@@ -3925,7 +3925,7 @@ dependencies = [
 [[package]]
 name = "postgres-protocol"
 version = "0.6.4"
-source = "git+https://github.com/neondatabase/rust-postgres.git?branch=neon#988d0ddb4184c408fa7fc1bd0ecca7993c02978f"
+source = "git+https://github.com/neondatabase/rust-postgres.git?branch=neon#20031d7a9ee1addeae6e0968e3899ae6bf01cee2"
 dependencies = [
  "base64 0.20.0",
  "byteorder",
@@ -3938,12 +3938,13 @@ dependencies = [
  "rand 0.8.5",
  "sha2",
  "stringprep",
+ "tokio",
 ]
 
 [[package]]
 name = "postgres-types"
 version = "0.2.4"
-source = "git+https://github.com/neondatabase/rust-postgres.git?branch=neon#988d0ddb4184c408fa7fc1bd0ecca7993c02978f"
+source = "git+https://github.com/neondatabase/rust-postgres.git?branch=neon#20031d7a9ee1addeae6e0968e3899ae6bf01cee2"
 dependencies = [
  "bytes",
  "fallible-iterator",
@@ -5945,7 +5946,7 @@ dependencies = [
 [[package]]
 name = "tokio-postgres"
 version = "0.7.7"
-source = "git+https://github.com/neondatabase/rust-postgres.git?branch=neon#988d0ddb4184c408fa7fc1bd0ecca7993c02978f"
+source = "git+https://github.com/neondatabase/rust-postgres.git?branch=neon#20031d7a9ee1addeae6e0968e3899ae6bf01cee2"
 dependencies = [
  "async-trait",
  "byteorder",
diff --git a/proxy/src/proxy/tests.rs b/proxy/src/proxy/tests.rs
index 5d0340e85201..9c3be7361291 100644
--- a/proxy/src/proxy/tests.rs
+++ b/proxy/src/proxy/tests.rs
@@ -135,9 +135,10 @@ impl TestAuth for NoAuth {}
 struct Scram(scram::ServerSecret);
 
 impl Scram {
-    fn new(password: &str) -> anyhow::Result<Self> {
-        let secret =
-            scram::ServerSecret::build(password).context("failed to generate scram secret")?;
+    async fn new(password: &str) -> anyhow::Result<Self> {
+        let secret = scram::ServerSecret::build(password)
+            .await
+            .context("failed to generate scram secret")?;
         Ok(Scram(secret))
     }
 
@@ -284,7 +285,7 @@ async fn scram_auth_good(#[case] password: &str) -> anyhow::Result<()> {
     let proxy = tokio::spawn(dummy_proxy(
         client,
         Some(server_config),
-        Scram::new(password)?,
+        Scram::new(password).await?,
     ));
 
     let (_client, _conn) = tokio_postgres::Config::new()
@@ -308,7 +309,7 @@ async fn scram_auth_disable_channel_binding() -> anyhow::Result<()> {
     let proxy = tokio::spawn(dummy_proxy(
         client,
         Some(server_config),
-        Scram::new("password")?,
+        Scram::new("password").await?,
     ));
 
     let (_client, _conn) = tokio_postgres::Config::new()
diff --git a/proxy/src/proxy/tests/mitm.rs b/proxy/src/proxy/tests/mitm.rs
index e0c2d836f460..3b760e5dab17 100644
--- a/proxy/src/proxy/tests/mitm.rs
+++ b/proxy/src/proxy/tests/mitm.rs
@@ -148,7 +148,7 @@ async fn scram_auth_disable_channel_binding() -> anyhow::Result<()> {
     let proxy = tokio::spawn(dummy_proxy(
         client,
         Some(server_config),
-        Scram::new("password")?,
+        Scram::new("password").await?,
     ));
 
     let _client_err = tokio_postgres::Config::new()
@@ -231,7 +231,7 @@ async fn connect_failure(
     let proxy = tokio::spawn(dummy_proxy(
         client,
         Some(server_config),
-        Scram::new("password")?,
+        Scram::new("password").await?,
     ));
 
     let _client_err = tokio_postgres::Config::new()
diff --git a/proxy/src/scram.rs b/proxy/src/scram.rs
index df4b3ec8d70b..76541ae2f3d2 100644
--- a/proxy/src/scram.rs
+++ b/proxy/src/scram.rs
@@ -114,7 +114,7 @@ mod tests {
     }
 
     async fn run_round_trip_test(server_password: &str, client_password: &str) {
-        let scram_secret = ServerSecret::build(server_password).unwrap();
+        let scram_secret = ServerSecret::build(server_password).await.unwrap();
         let sasl_client =
             ScramSha256::new(client_password.as_bytes(), ChannelBinding::unsupported());
 
diff --git a/proxy/src/scram/exchange.rs b/proxy/src/scram/exchange.rs
index 16575d5d9810..51c0ba4e094c 100644
--- a/proxy/src/scram/exchange.rs
+++ b/proxy/src/scram/exchange.rs
@@ -86,14 +86,7 @@ pub async fn exchange(
         .map_err(|e| std::io::Error::new(std::io::ErrorKind::Other, e))?;
     let sent = match init.transition(secret, &tls_server_end_point, client_first)? {
         Continue(sent, server_first) => {
-            // `client.update` might perform `pbkdf2(pw)`, best to spawn it in a blocking thread.
-            // TODO(conrad): take this code from tokio-postgres and make an async-aware pbkdf2 impl
-            client = tokio::task::spawn_blocking(move || {
-                client.update(server_first.as_bytes())?;
-                Ok::<ScramSha256, std::io::Error>(client)
-            })
-            .await
-            .expect("should not panic while performing password hash")?;
+            client.update(server_first.as_bytes()).await?;
             sent
         }
         Success(x, _) => match x {},
diff --git a/proxy/src/scram/secret.rs b/proxy/src/scram/secret.rs
index fb3c45816e03..b46d8c3ab588 100644
--- a/proxy/src/scram/secret.rs
+++ b/proxy/src/scram/secret.rs
@@ -59,10 +59,8 @@ impl ServerSecret {
     /// Build a new server secret from the prerequisites.
     /// XXX: We only use this function in tests.
     #[cfg(test)]
-    pub fn build(password: &str) -> Option<Self> {
-        Self::parse(&postgres_protocol::password::scram_sha_256(
-            password.as_bytes(),
-        ))
+    pub async fn build(password: &str) -> Option<Self> {
+        Self::parse(&postgres_protocol::password::scram_sha_256(password.as_bytes()).await)
     }
 }