But I think it would help to understand if Supabase is fully managing key backup and recovery internally, how exactly is that working?
Ultimately the whole value of TDE at the database layer comes down to two things IMO which are flip sides of the same coin;
1) Being able to store your database backups in less trusted locations,
2) actually keeping the secret data secret, which amounts to keeping that encryption key secured at a much higher level than the database backup itself.
In the end it’s just key vaults all the way down, isn’t it!