You need option 33 for SS1 wich is on the OS/400 cd's.
You then download openssl-3.7.1.0.exe and zlib-1.1.4.0.exe from www.bullfreeware.com. ftp them binary to /QOpenSys/..., expand them running the .exe and restore them using /usr/sbin/restore under PASE using QP2TERM.
Generate host and client keys as normally using /usr/local/bin/ssh-keygen, and move the content of the generated id_rsa.pub, id_dsa.pub and identity.pub to a file called authorized_keys and move it to the dest host in users homedir in .ssh directory. See to that that same username is used on dest host as on iseries logon, or use the ssh -l when running ssh in general.
Interactive logon/tty is not supported - in other words make the whole config as 'dont promt for passwords' config.
You also need to adjust client ssh_config with dsa or identity and PasswordAuthentication no.
My /QOpenSys/usr/local/etc/ssh_config:
ForwardX11 no
RhostsRSAAuthentication no
RSAAuthentication yes
PasswordAuthentication no
HostbasedAuthentication no
BatchMode no
CheckHostIP no
AddressFamily any
ConnectTimeout 0
StrictHostKeyChecking no
#IdentityFile /.ssh/identity
IdentityFile /.ssh/id_dsa
If ssh-rand-helper fails then edit ssh_prng_cmds and replace cmds in script with 50-100 lines of > "/QOpenSys/usr/bin/ls" /QOpenSys/usr/bin 0.02 < (no<>) - Can also be done nicer thru API or PGM wich decreases connection time.
Editing files is most easy done using OS/400 cmdline EDTF '/QOpenSys/../filename' or thru a mapped NetServer SMB drive using a pceditor. Use OPSNAV to setup that env.
Use /QOpenSys/usr/local/bin/ssh -vvv x.x.x.x to debug.
FYI scp and sftp also works.
iSeries is just black magic !