Could you please describe the question more detailed?
Did you mean that your data contain sensitive information like password and this data should be displayed into the grid by example like **** and when edit it it should be the same way *****?
Is the password field encoded with some algorithm or it is a text which can be read from everyone?
From what I understand I do not recommend you to transfer a passwords as texts over the networ. It is very dangerous and your application can be accessed from anyone.
The password in this case can be seen in the ajax response and any people that can open the console can see the passwords.
There is no sense to do this. Instead f this you can do this using a custom formatter, where you can read the the passord put **** in the cell and store the text in separate span tag. In case of reading you should define your custom unformat functionto get the text and put it in your password field. Something like this