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This paper discusses design and analysis of an FPGA-based system containing two isolated, Altera Nios II softcore processors that share data through two custom crypto-engines. FPGA-based Single-Chip Cryptographic (SCC) techniques were employed to ensure full red/black separation. Each crypto-engine is a hardware implementation of the Advanced Encryption Standard (AES), operating in Galois/Counter mode (GCM). The features of the AES crypto-engines were varied with the goal of determining which best achieve high performance or minimal hardware usage. To quantify the costs of red/black separation, a thorough analysis of resource requirements was performed. The hardware/software approach was utilized in order to provide appropriate levels of flexibility and performance, allowing for a range of target applications.