Steps to Encrypt SharePoint synced files -DLP MMK

Copper Contributor
Please give me the step by step process to secure corp files. I am sure it can be done with keys.
Scenario:
A private Sharpoint site is created to share corporate files with outside contractor.
A folder is shared and files synced to their local device.
Files must be editable by contractor while connected.
Goal is to prevent data loss (DLP)
Ie The files must not be usable if emailed/retained.
I believe a public key approach is the solution: SharePoint holds one key and admin (me) holds/shares the key with the contractor.
In other words files are always encrypted and can only be read if contractors is connected to SharePoint (both keys available).
What are the exact steps to accomplish this?
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