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IPTV encryption

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Hi guys, we are running small IPTV application for our hotel client, basically they have RF input with HD channels, we use hdmi qam modulator, we connect input via loopout and output the signal over IP, with cisco switch we distribute it over the building, it was a small hotel so they had no problem with physically plugging off the cable, if client decides not to pay extra 5 bucks a day for this service. They have been expanding over the time and now they came to the point when they want to have a normal conditional access system. Are there any ways to encrypt traffic with passive device (firewall-like-gateway) and decrypt it with STBs, what options do I have? Thank you in advance

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