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You can create an encypted file by passing it to tool which takes the
1. application stripped.elf
as input and generate an encrypted file.
On the device side, you have to incorporate a way to decrypt the encypted file. I am assuming that the keys used for encryption are also being shared somehow witht the client. The application running on the device i.e., OTA_FR should be modified to decrypt the stripped.elf file and save it to flash.