Why it matters in practice
Separating data encryption from key-encryption operations can support centralized access control and key lifecycle management. The arrangement still depends on secure key policies, correct wrapping, and application authorization. It does not mean every request is encrypted end to end or that a compromised authorized process cannot read plaintext.
Example
A service encrypts a stored credential with a generated data key, then asks its KMS to wrap that key before storage.
Educational note
This definition is general information, not legal advice. It may omit facts that matter to a specific situation and does not establish or guarantee compliance.