After extensive googling I haven't managed to find an answer to this question1, which is surprising, since `security through obscurity' isn't really security at all...
Is there a reliable source of an answer to this question (such as a certification application for iOS, source code, or similar)?
1The only mention I could find was that it might use 3DES.
According to this official Apple webpage :
Keychain items are encrypted using two different AES-256-GCM keys: a table key (metadata), and a per-row key (secret-key).
UPDATE: Update from May 2019. Encryption changed from 128 to 256.