Skudo is actively working on several ESA ( European Space Agency) projects to expand and bring our encryption technology to space applications. Within the scope of a contract with ESA and ESA BIC (European Space Agency Business Incubation Centre Estonia), we are developing a novel asymmetric PKI that is compliant with the ESA Space Security Data Link protocols. We are demonstrating the functionalities of our hardware embedded HSM, in combination with the custom ESA PKI, on a strato balloon flying at 20-25Km in the sky, simulating the HAPS (High Altitude Pseudo Satellite) conditions, by demoing an end-to-end asymmetric encryption data link established between the ground and the balloon itself.