You can encrypt the database completely using the -e switch during dbinit.
dbinit - e -p 1024 test.db
Encrypt the database (-e)
Encryption makes it more difficult for someone to decipher the data in your database by using a disk utility to look at the file. File compaction utilities cannot compress encrypted database files as much as unencrypted ones.
The encryption used is intended only to keep data hidden in the event of casual direct access of the database file.
You can also encrypt packets that that hit the network, by using the same -e switch at db engine startup
dbsrv7 -e test.db
If you are after strong encryption, I know SQL Anywhere group has technology partnerships with other vendors. Not quite sure about the names.