Yes, your USB key needs to have resident key support. I'm looking forward to the Solo key (which is now one or two years delayed from when it was originally sup

Yes, your USB key needs to have resident key support. I'm looking forward to the Solo key (which is now one or two years delayed from when it was originally supposed to come out), which will apparently support thousands of resident keys. You don't need so many for SSH, but it's great for usernameless/passwordless auth with websites.