Google Chrome team has announced the beta release of a  Terminal Emulator app for Chrome OS and Chromebook. Here are the details.

Secure Shell App for Chrome OS

Secure Shell is an xterm-compatible terminal emulator and stand-alone ssh client for Chrome. It uses Native-Client to connect directly to ssh servers without the need for external proxies.

Secure Shell is a Beta release and has known bugs.

ecure Shell is an xterm-compatible terminal emulator and stand-alone ssh client for Chrome.  It uses Native-Client to connect directly to ssh servers without the need for external proxies.

Secure Shell provides similar functionality to PuTTY for Windows, and the ssh command-line application for Mac OS X and Linux systems.  It’s available on Chrome OS as well as Chrome for Windows, OS X, and Linux.  Chromebook users can use Secure Shell to replace the ssh command from crosh.
This is a Beta release.  Most of the what you need from an ssh client is ready, but expect some rough edges.  Check the FAQ and the Open Bug List for some of the details.
It should be working but yes, with some bugs. Google team says they have been testing this in-house for sometime now.
chromebook  Secure Shell (Terminal Emulator and SSH Client) for Chrome OS #extension