See here for background
SQL tenant servers will make outgoing connections, most prominently to the KV layer. We need to come up with way to encrypt and authenticate these connections.
This is still in the design phase but generally will be based on some crypto. The design will apply more broadly than to the SQL tenant connections - this issue tracks only the work to apply it to these connections.
An internal, early, work in progress strawman is here.
The auth broker is tracked in #49105.