CD player with USB and Coaxial out - does such a thing exist?

It's all about bit rate that your dac samples at.  Traditional redbook cd's are 16 bit.  Higher quality ones are 24 bit.  Some Dacs are running at 32 bit these days.
If you desire high definition music much of it is either 24/192 or even 24/384.   Essentially, the higher the rate, the faster your dac is sampling music for better accuracy and less noise or jitter.
Can I tell the difference between my 96 and 192 units?  Only on specific higher bit rate recordings.  My Chord runs at 384 and that is almost always discernable when compared to the 24/96.

"I have both Music Fidelity units. 24/96 and a 24/192 for the Vlink II. It's called an SPDIF converter. If you can't find one, let me know. I'd be willing to part with the 96."

Thanks for the offer, I already ordered a TeraLink X2, but now I'm curious: can you tell a difference between the 24/92 and the 24/192?

I have both Music Fidelity units.  24/96 and a 24/192 for the Vlink II.  It's called an SPDIF converter.  If you can't find one, let me know.  I'd be willing to part with the 96.

The M2Tech HiFace is a good converter. No need for a USB cable as it's input is a USB A male connection. Comes with either RCA or AES/BCN output (When searching watch this). Can be found on Ebay or here on AG for under $100. The MS V-links are also good at that price, require USB cable however. 

I went with a TeraLink X2, good enough for now.

Thanks for replying, yes that item is what I'm looking for and didn't show up on my searches so I appreciate the recommendation.

I'm using it to play audio files from my laptop.

I used a Musical Fidelity V-Link in my system for a while.  They can be had used for $75.  They had a version II that has a higher bit rate for a bit more cash.

As for CD players, the ones that have a USB input will allow you to use the built in DAC for things other than just the CD in the player, which is great.  If the CD player in question does not have a digital output, then you are stuck with the built in DAC.  

As you move up the food chain, you will find CD players with digital output as well, which give you the option to use it as a stand alone player or with an outboard DAC.

Out of curiosity, what are you going to do with the USB-SPDIF (Coaxial) converter?