I think Esoteric and PS Audio both use FPGA for the conversion. I do not have an FPGA DAC bur that is one approach that I want to try one day. It is hard to say one FPGA is better than the other since the software in the FPGA can make the DAC sound different.
The D.BOB that is referenced by @tomcy6 is a superb way to use an external DAC with your transport. It is also relatively cheap. I paid under $700. I use a very cheap OPPO to play CD’s and SACD’s which connect by HDMI into the D.BOB. This connection can take pure DSD streams out of the OPPO. The guys at D.BOB say it is legal to do what they are doing. The DSD police have not come after me so maybe it is legal.
The D.BOB connects by SPDIF into your DAC. Not sure if all DACs will work but I have tested it successfully with the Schitt Yggi+ LIM | Schitt Yggi+ OG | Benchmark DAC3B. I use the DAC3B with it now since it supports DSD.
BTW - the D.BOB setup replaced my SONY SCD-1 SACD player modded by Vacuum State to Level 5+. The D.BOB was a worthy replacement after the SCD-1 died recently.