I've been playing with an iBasso DX220 MAX in that capacity. The "problem" is its balanced line-out sounds so good, there may be no rational use of its digital (coax) out. Fed right from line-out into a very nice VAC Master preamp and Statement 450S amp - it absolutely trashes the NAD M12 (streamer/DAC) and Node 2i streamer I have around here. Pretty sure I like its sound better than the two Schiit Yggdrasils I had in past. Might be comparable or better to my Phison DAC (haven't directly compared those yet). But the poor M12 - my god, it sounds completely broken next to the iBasso. Really enjoyable sound, even with a high end analog rig in here.
No issues with high-res when you use line out!