Artifactory provides a unique solution to support encrypted passwords through the Password Encryption Policy setting as follows.
Password Encryption Policy Setting
Artifactory can receive requests with an encrypted password but will also accept requests with a non-encrypted password (default)
Artifactory will reject requests with encrypted password
Artifactory requires an encrypted password for every authenticated request
For more details on why Artifactory allows you to enforce password encryption, see Centrally Secure Passwords.