The Cyanogen team took to their official blog earlier this afternoon to announce that the previously-detailed SMS encryption is ready to start rolling out via nightly builds of CM 10.2, and later to CM 11. The service will be called WhisperPush, and is a joint effort between the CyanogenMod team and Moxie Marlinspike, who maintains the SecureSMS open-source platform for encrypted SMS messaging.
Currently, users can download the TextSecure app from Google Play to take advantage of the SecureSMS system. You grab the app from Play and as long as the recipient on the other end is using the same application, you can be sure that your SMS messages won't be snooped by any curious eyes along the way, as well as encrypting messages on your device.
The advantage of CM implementing this open-source system into their software is that because of the way CM handles text messages, yow will be able to continue using pretty much any SMS app you choose and your messages will continue to be encrypted. The user on the other end will still need to either be running a version of CM with this functionality built in, or another implementation of the same protocol (for example, the above mentioned TextSecure app). If the user on the other end does not meet these simple requirements, texting will act as normal, and be sent / received unencrypted.
Check out CM's official site for more info right here, and keep an eye on those nightly 10.2 builds if this is something that interests you.