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Thank you for contacting Sony, Johnzena. Your UBP-X700 Ultra HD Blu-ray Player can pass through the raw DSD signal (from SACDs or DSD files) via the HDMI OUT 2 (AUDIO ONLY) port, provided your external DAC supports DSD over HDMI. The Coaxial Output is limited to high-resolution PCM and compressed formats; DSD will be automatically converted to PCM for this connection. For the most reliable passthrough of DSD and the absolute best quality from all high-resolution audio formats, please ensure the following critical settings are configured: Digital Audio Output: Set to Auto. (Allows the player to negotiate the best possible format with your DAC.) DSD Output Mode: Set to Auto. (Enables DSD over HDMI passthrough.) BD Secondary Audio: Set to OFF. (Turning it OFF prevents the player from having to down-convert the high-resolution audio stream, ensuring the raw, unmodified, highest-quality signal is sent directly to your DAC.) We appreciate your interest in Sony products. Should you require any further assistance, please don't hesitate to reach out for support here: https://us.esupport.sony.com/support/s/support-contact?language=en_US&category=tv Best regards, Gus, Sony North America Customer Support
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