But wouldn't the tracks be stored encrypted on your phone and then decrypted when played in Tidal, that's how I would do it anyway.
Perhaps the problem the music streaming providers have with allowing UAPP to download tracks for offline mode is trusting UAPP to accurately report the number of times a given track has been played while in offline mode, the artist would expect the 0.0000001p royalty for every time an offline track was played too.
I also use UAPP on TIDAL, and (as far as I could tell) my listening stats are updated even if I use UAPP.
(besides, I see no theoretical difficulties in compiling statistics on the basis of what I request from the remote server, without needing a
specific player that keeps track of what I listen to).
Regarding the encryption of the tracks, I have no idea whether or not the official app encrypts the songs stored on the device.
(may not be necessary, as if you are not root, that part of the filesystem should not be accessible).
I can imagine 2 reasonable scenarios:
1) in which the stream is transmitted (and stored locally) encrypted.
The decryption would take place during play, using decryption keys that must be known only to the official app (otherwise it would be useless encryption).
And in this case the third-party app would have no way to decode the stream.
2) the stream is transmitted unencrypted, and encrypted by the app (official or third party) on a voluntary basis.
In this case you should trust that the third-party app does effective coding to avoid having the binaries exposed in the case of a rooted device.
This 'confidence' may not exist.