Does HC AD Sync utility work using secure channel?
Yes ADSync utility provides an option to use SSL layer for all communication between Local and Cloud DC. To use ADSync using SSL, make sure that LDAP-S is configured on the cloud AD, because ADSync utility will establish communication with the hosted AD. This means that the SSL (LDAP-S) configuration is to be done on cloud DC and not on the client DC.
Also, inside “Cloud AD Settings” tab of AD Sync tool’s interface, provide the SSL enabled cloud domain name instead of an IP address.