Better DAC then DA1 module in McIntosh C49 without braking the bank.

You don’t state at what price level the bank begins to break, but if $700 is within reason, this Musical Paradise MP-D2 dac would probably do the trick.

I owned the MKii version and still regret selling it, which I only did to help fund  the purchase of a Holo Audio May.

If you want to keep it Mac, then you could go for the MDA200 with the DA2 module as I did. It was a nice improvement over the C47 I had.  However with so much more good, more affordable dacs available,  I soon realized my mistake and tried the new Emotiva XDA-3, which totally won me over .

Everything the Mac has and then some, for a fraction of the price.

Chord Qutest, Benchmark DAC 3. 

Thank you guys for your suggestions. 

I am not interested in McIntosh dacs since I've heard the DA2 dac and it was a slight improvement over my DA1 module.

I do not need anything extra like a headphone amp or a preamp in the unit. I need just a straight forward DAC that does DSD 128 or higher, USB, XLR connections, remote control. 

I was thinking a $2-2.5K budget. 

Chord just doesn't look appealing to me. 

Used equipment is ok, since I can afford a higher end unit.

I was researching a  PS Audio Directstream Dac. Some reviews rave about it, some state it's very noisy. Since my system is very revealing now, I don't want hum or noises coming through. 

Ah my bad missed the balanced requirement. 
Add Bryston BDA3 to the list. Straight DAC no preamp no headphone out. 

Holo Spring 3 L1 or L2 sans pre-amp would fall within your budget, and is touted as being close in performance to the May.
GoldenSound has a thorough review here:
 

I have an MA8900 with the DA1 module.  It’s a good DAC but I purchased a Denafrips Pontus II 12th Anniversary and a Hermes DDC and am quite pleased with the outcome.  Those two best the internal DA1 by some good measure in detail, soundstage and imaging.

You might want to consider a Schiit Yggdrasil multibit DAC which, new, is right in your price range. 

In comparison to my vinyl, CDs, files and streaming sounds flat and unremarkable. 
 

Not at all surprising given you’re using a computer as a streaming source and a sterile, budget DAC.  You need both a new DAC and a dedicated streamer to really up your game, and continuing to use your PC for streaming is a non starter because it’s an absolutely awful streaming source.  I’d recommend the Denafrips Pontus ll DAC and the Innuos Pulse Mini streamer as the former is very natural sounding and the latter is a good streamer (and worlds better than your PC) and comes with an app that’s excellent both for sonics and ease of use.  Just my $0.02 FWIW, and best of luck. 

I got a C2700 with the DAC2 board and it was quite a bit better than the Schiit Audio Gumby multi bit i had prior. That said i now have a Chord DAC and its significantly better than the DAC2 board but it should at more than the total cost of the C2700 preamp.

I would look for a DAC2 board first its quite good for the cost and has HDMI E-ARC input as well if you care to integrate a TV into your system. Works very well and would be a good update from the DAC1 board. Other options others have already mentioned. 

I owned a Bryston BDA-3 and can say that it is a great sounding DAC. A good deal if you can find one on the preowned market. 

Thanks everyone for their input. I got a used Holo Audio May KTE dac. Very happy with it.

👍

If you haven't already, determine from those who have experience with it the best way to connect it, and what format/sample rate it prefers. 

Thought I’ve read Holo DACs are optimized for USB input but definitely worth checking.  Thanks for the follow up, and congrats on the DAC!