You can encrypt individual properties in your Core Data model entities by making them transformable properties, then creating an NSValueTransformer subclass which will encrypt and decrypt the data for that property. While this is not the whole-database decryption that you’re looking for, it will have a much lower memory footprint than decrypting an entire database into memory. Additionally, it will allow the decryption to be done lazily, rather than all up front, so your application will load much faster. Depending on the encryption used, I would even expect that the on-disk data accesses for loading each entity would be slower than the decryption process for the properties, so you won’t see that much of a performance penalty when accessing the properties.
Transformable properties like this are very easy to use, because you read and write to them as normal, while the encryption / decryption goes on behind the scenes.