It depends on whether you are talking about encryption or MTOM encoding. If you are talking about encryption, then most likely you are looking for a WS Security solution. In this case, PyXMLSec is a good option for encrypting and digitally signing XML. However, I would caution against using XML encryption, as it was broken. Instead, you can use GPG encryption or something similar.
If you are talking about MTOM encoding, then I do not believe that there is a ready-made solution to do what you ask, but it should not be so difficult. MTOM uses MIME attachments to send binary data. You should be able to use Python built into the mail.mime package to create MIME messages.
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