MCH allows for encrypted backups, it’s a macOS options. However, MCH is still relying on obsolete Apple Filing Protocol for TimeMachine instead of using much modern SMB3 (My Cloud (not Home) are compatible with the modern options.
When I bought the MCH the knowledge base stated that it was compatible with the modern option, it was changed after noticed this did not work. Level 1 support tried to make me do it whereas the MCH did not allow it.
It does seem to work nevertheless (I wonder though whether TimeMachine over AFP will still be an option on macOS 10.15).
In addition, the whole feature is dumb, there is no settings for TimeMachine, even to set a limit size for backups…
