Bits of .NET

The easiest way to do that is using a function

CREATE FUNCTION [dbo].[HideNameWithAsterisks](@Name varchar(max))

RETURNS varchar(MAX)

AS

BEGIN

    DECLARE @loop int = LEN(@Name)

    WHILE @loop > 1

    SELECT @Name = STUFF(@Name, @loop, 1,
    CASE WHEN SUBSTRING(@Name, @loop - 1, 2) like '% ' THEN ' '
     WHEN SUBSTRING(@Name, @loop - 1, 2) like ' %' then substring(@Name, @loop, 1)
     ELSE '*' END), @loop += -1

    return @Name;

END

and here is the usage

SELECT dbo.HideNameWithAsterisks(N'The KinGS Never DIE!')

Output: T** K**** N**** D***