Definitely a separate DAC. For about $1,000 a Denafrips Ares 12th, but really would recommend moving up one notch to the Denafrips Pontus II 12th. It punches WAY above it's weight, and for about $1,800 is good enough for a later upgrade to your streamer. I have had one for over 2 years, and adore it. Being an R2R ladder DAC, it is more laid back and not in your face.....more analog sounding, warm, inviting, vocals fleshed out, really involving.
I also added a Denafrips Iris DDC for about $500, and run I2S to the Pontus II....and that really upped the ante.....several here have done the same.