No, no direct tank connection is required. I have a 30 plate just to be sure and an electiric demand water heater. I shut off all of the circuits on the electric demand heater so it is nothing more than a pipe in the winter and I have never ran out of hot water.
Over the holidays we had 9 people staying in the house and the shower ran for probably 1.5 hours+ straight a couple mornings. if that did not run the plate exchanger at max, not sure what would.
You also need to add a tempering valve after the plate exchanger on the potable water side of to avoid scald potentials at your appliances (sinks, showers, etc). there are plenty of examples on here if you look around a little on various ways to set this up.