@Vaisakh.V.A I don’t think that is possible with pega ootb kafka instance. We can maintain enough security with broker details, SSL or SASL and property file.
OAuth 2.0 security mechanism is not currently supported for the Stream services and not in the roadmap for future releases as well.
OAuth 2.0 is supported for Data-Admin-Kafka instances in Infinity’23 version which is currently available, as this version has Kafka-clients library 3.4.0 version that supports the latest OAuth2 client properties.
@Vaisakh.V.A I haven’t tried, but referencing the documentation from Confluent.
In the data instance, give Host and Port address as your Bootstrap Server and associated port, and give below information in your propeties file. The main differenciator is sasl.mechanism=OAUTHBEARER