Why not store your remote state in S3 buckets? They support encryption at rest.
> As long as you authenticate your request and you have access permissions, there is no difference in the way you access encrypted or unencrypted objects.
The only advantage of S3 encryption is that if someone walks out of the data center with a disk, they can't read the data on it.
Ultimately, you have to supply at least one secret to the application at runtime, and then it can bootstrap its way to others if needed.