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How to setup encryption with two routers at layer 2 network

Hi all,

My customer is using layer 2 service from ISP to connect two branches. However, they want to use it as layer 2 with encryption, which means, two branch will be shareing same IP range with router to do the encryption. Is that possible to do that?

Understand router is a layer 3 device, is that possible to do as bridge or layer 3 with duplicated IP?

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