Unfortunately not.
We employed a third party to develop the encryption / decryption process and completed a pull request however the coding was not up to Frappe’s standards / requirements and we no longer use the third party so cannot continue with it further. We tried at least to contribute to making the platform more secure.
I think the foundation should be picking this one up as a core to the product, irrespective if files are stored local to ERPNext server or external.