How about an FPGA to convert the data stream into DSD ?
It's a kind of DAC when you think about it.
Yes, I believe that's already being done in FPGA by some vendors, such as PS Audio. Seperately, AKM appears to have a very nice standard product SRC chip that, among other capabilities, can convert a linear PCM data stream in to DSD.
National Instruments has posted a tutorial.
http://www.ni.com/tutorial/7779/en/
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http://www.ni.com/tutorial/7779/en/
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